Introduction
By the end of this topic, a student should be able to explain and critically analyse:
- Gains from trade and specialization.
- The principle of comparative advantage and its limitations.
- Trade restrictions.
- The danger of overprotection and problems involved in trade restriction.
- Terms of trade and balance of payments.
- The position f developing countries on co-operation.
- Gains from regional integration and why economic integration may fail.
-
Distribution of gains and methods of equalizing the
gains from trade. (Stress should be on theory with examples drawn from any
regional grouping)