Normative premises in the theory of international economics

Author

Horn, Ernst-Jurgen

Source

International Economic Relations from Islamic Perspectives

Publisher

Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)

Publication Date

1992-12-31

Country of Publication

Saudi Arabia

No. of Pages

22

Main Subjects

Economy and Commerce
Islamic Studies

English Abstract

The prevailing international economic order is based upon the framework and institutions created at Bretton Woods.

The developed countries, having a larger weight in the decision making processes of international economic institutions backed by their economic power have been managing the International economic system.

This has lead to the demands for New International Economic Order (NIEO).

Since NIEO could not be established for various reasons, the developing countries have to live and survive within the present international economic order.

An analysis of normative premises of theory of international trade has shown that gains from relatively free trade has lost appeal both in the developing and de veloped countries.

New main focus of trade theory is not how countries can mutually gain from trade without government intervention but how a country can gain in international trade from government intervention.

The traditional infant industry argument is now being extended to high technology production in the industrial countries.

At the end, it is recommended that the government of a developing country "should be careful to limit the range of its interventions to what it can manage both administratively and economically.

Language

English

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Data Type

Book chapters

Notes

Includes margin notes : p. 62-64

Record ID

BIM-778239