International Trade and Finance

First explained by David Ricardo through comparative advantage, international trade and finance expands worldwide efficiency and productivity. Econlife looks at international trade to see its impact through goods and services, trade balances, trade barriers like tariffs and quotas and subsidies.

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    Doha Deadlock

    Apr 30, 11 • 500 Views • No Comments

    Can you convince a Lubbock, Texas cotton farmer (or his Congressman) to forgo his (maybe $150,000) cotton subsidy? Probably not. After all, these U.S. government payments let him profitably compete in world markets. Correspondingly, would China say yes to a......  [read more]

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    Putin’s Economics

    Apr 29, 11 • 470 Views • No Comments

    Our story begins during February when Russian Prime Minister Putin decided to freeze gasoline prices. Oil companies had a predictable response. They left. Following the money, they redirected their supply to higher prices elsewhere. The result? Russian......  [read more]

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    A Tank of Gas

    Apr 27, 11 • 598 Views • No Comments

    A tank of gas is not just a tank of gas. Isn’t it a spending decision? The national average for a gallon of regular is close to $3.88 and higher in California. July 2008 was the last time we dealt with 4 dollar gas. One economist estimated that 4 dollar......  [read more]

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    “Buy Australian?”

    Apr 25, 11 • 495 Views • No Comments

    In Australia, concerned about the impact of twin disasters in Queensland this summer, Australia is saying, “Buy Australian.”  But they just faced an unexpected problem. The T-shirts they are using to publicize the campaign were made in......  [read more]

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    Aspirational Pecans

    Apr 20, 11 • 522 Views • No Comments

    Our story starts with the walnut. Loved in China, and always cheaper than pecans, during 2007, suddenly, the walnut became relatively expensive. Following the law of demand, Chinese consumers bought fewer walnuts and more pecans. And that was when they......  [read more]