International Economics Term Paper Example | Topics and Well Written Essays - 1250 words

International Economics - Term Paper Example s and components which after being produced in ASEAN nations went to labor intensive countries for assembly and then final products reached the markets in Europe, America and Japan. This trade type started in IT products and expanded to other items too. Although ASEAN nations were integrating with the global economy, their intra regional integration was incomplete and was stagnating. In the past two decades the overall trade of ASEAN nations increased by 11% on annual note but intra regional export increased from 19% to 23% in the period 2000-2008.(Hanouz & Geiger,2010). In January 1992, the ASEAN nations signed ASEAN Free Trade Area (AFTA) for deeper economic integration which was to be obtained within fifteen years and it will lead to extensive liberalization in trade. The objective of AFTA was to increase regional trade among ASEAN nations and thus achieving economic independence from the world market (Ahlstrom & Stalros, 2005). As the theory goes, removal of intra regional tariff and non tariff barriers will lead to efficiency and as market size will increase investors will enjoy economies of scale. Here we will discuss about the role of AFTA in describing the pattern of trade in ASEAN nations. As per Balasaa, four different stages of economic integration can be given that are Free Trade Area (FTA), then a Customs Union (CU), a Common Market (CM) and at last a Economic Union (EU). Preferential Trade Arrangements(PTA) encompass lower tariff rates for member nations as compared to non members while a FTA is an regional integration which is formed by imposition of zero tariffs on trade among the member nations of FTA without any change of tariff on imports from non member nations. The traditional economic integration theories explain about the gains from trade and these are static analysis of economic integration. The first theory on economic integration was given by Viner in 1950. His trade creation effect says that as two countries enter into trade, the

Marxist tradition Essay Example | Topics and Well Written Essays - 500 words

Marxist tradition - Essay Example In fact, Karl Marx presented this new logic of political economy in a statement: â€Å"An increase in the productivity of labour means nothing more than that the same capital creates the same value with less labour, or that less labour creates the same product with more capital† (Marx, 1863-1883, p. 271). In other words, industrial development neglected the value of working class, as capitalists had put their incomes on the pedestal of social relations. In short, the dialectical type of antagonist relations that showed up after capitalist change was the main object of Marxist critique.On the one hand, Marx clearly understood the key trends of his time based on the prevalence of economic relations in all social spheres. In this context, Marxism proposed the pioneer theoretical framework; it stated that working hard means nothing in the new society. In contrast, classical liberalism that believed in market self-regulatory power to human prosperity (Smith, 2007) could not overcom e this new type of social inequality. Moreover, Marxism served as a good base to further investigation of capitalist transformations in the society. For instance, modern ‘theory of oppressed† shows that Marx was convincing and predicted the main challenges of capitalist social order. In general, Marxism noticed the main danger of the twentieth century that led to huge transformations of the world order; in this context, Marx and Engels (1848) widely discussed the position of proletariat as neglected by revolutionary class, whose voice is important but not heard.