Unit 7: Trade with the Poor
Introduction
The impacts from trade between rich nations such as the US and Germany and Japan, and between rich and poor nations such as the US and Mali or Sudan are quite different. While we are made richer by both kinds of trade, trade between rich nations tends to be based on differentiated products within similar industries. Trade between rich and poor nations tends to be based on comparative advantage--that is, it depends on differences in natural resources, labor skills, and so on. In this unit, we look briefly at theories of economic development, and then explore the impact of trade between rich and poor nations on labor and the environment.
