global labor arbitrage
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Global Labor Arbitrage

lobal labor arbitrage is where, as a result of the removal or reduction of barriers to international trade, jobs move to nations where labor and the cost of doing business (such as environmental regulations) is inexpensive and/or impoverished labor moves to nations with higher paying jobs. Two common barriers to international trade are tariffs (politically imposed)…

non-availability approach
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The Non-Availability Approach

he Non-Availability Approach explains why a country imports the goods that are not available at home. It was conceptualized by Irving Kravis. There are two kinds of unavailability – absolute and relative.   Absolute Unavailability The presence or absence of natural resources could easily be fitted into the Heckscher-Ohlin model. The Heckscher-Ohlin model stresses the differences in relative…

The juglar cycle
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The Juglar Cycle

he Juglar cycle is a fixed investment cycle of seven to eleven years identified in 1862 by Clement Juglar. He observed changes of investments in fixed capital that was not just correlated with the level of employment of the fixed capital. A 2010 research study employing spectral analysis confirmed the presence of Juglar Cycles in world GDP dynamics. The so-called Juglar cycle has often…

bimetallism
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Bimetallism

imetallism is a monetary standard in which the value of the monetary unit is defined as equivalent both to a certain quantity of gold and to a certain quantity of silver; such a system establishes a fixed rate of exchange between the two metals. Characteristics of Bimetallism Both gold and silver money are legal tender in unlimited amounts. Highly popular use of currency…

Cornucopia
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Cornucopia

he term cornucopia has its roots in Greek mythology. It translates to the”horn of plenty”, which magically supplied its owners with endless food and drink. Thus the cornucopians are sometimes known as “boomsters”, and their philosophic opponents—Malthus and his school—are called “doomsters” or “doomers.” Theory of Cornucopia in Economics A cornucopian is a futurist who believes…

the pigou effect
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Pigou Effect

he Pigou effect is an economics term that refers to the stimulation of output and employment. This is caused by increasing consumption because of a rise in real balances of wealth, particularly during deflation. Real wealth was defined by Arthur Cecil Pigou as the sum of the money supply and government bonds divided by the price level….

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