ECN500- Module 07: Trade Policies for the Developing Nations and Multinational Enterprises

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  • Module 07: Introduction

    This module introduces the trade characteristics, problems, and policies of developing economies. We investigate institutions and policies that aid economic growth and promote economic stability among the world’s developing countries, specifically the World Bank and the International Monetary Fund. We explore the international flow of production, labor, and capital, as well as the role of the multinational enterprise (MNE).

  • Learning Outcomes
    1. Analyze government actions that approach or fall within the category of industrial policy.
    2. Evaluate arguments for trade restriction and/or industrial policy in developing nations in light of the unique effects of international trade on less-developed economies.
    3. Critique the effects of World Bank and International Monetary fund loans on developing countries.

    ReadingsRequired:

  • Chapter 7 International EconomicsCruz, M., Milet E., & Ollareaga, M. (2020). Online exports and the skilled-unskilled wage gap. PLoS One, 15(5). https://doi-org.sdl.idm.oclc.org/10.1371/journal.pone.0232396
  • Recommended:Chapter 7 PowerPoint slidesNaz, A., Shaista, A., & Noman, S. (2019). The determinants of income distribution, an empirical analysis of developing countries. Public Finance Quarterly, 64(4), 494-510. https://doi-org.sdl.idm.oclc.org/10.35551/PFQ_2019_4_3 Small, O., Brown, L., & Canavire-Bacarreza, G. (2020). The fiscal policy response to public debt in developing countries. Contemporary Economic Policy, 38(1), 155-165. https://doi-org.sdl.idm.oclc.org/10.1111/coep.12432
  • Module 07: Discussion
  • Trade Policies for the Developing Nations
    • Discuss what led India in the 1990s to abandon its system of import substitution, and what growth strategy did India adopt? What lesson can be learned from this situation?
    • What effects does labor migration have on the country of immigration? The country of emigration? Discuss how this relates to KSA?

    Directions:

    • Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
    • Your initial post should address all components of the question with a 500 word limit.
    • Reply to at least two discussion posts with comments that further and advance the discussion topic.
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