By United Nations
Banana costs in the ecu Union are nearly double international degrees. those costs are maintained through restrictive import quotas and price lists that generate rents that accrue to manufacturers and vendors. the eu Union is obliged to take away its quantitative regulations and change them with price lists which are more likely to supply choice to current quota holders from ACP nations. symptoms are really small share of the rents are at present accruing to ACP manufacturers and the loss in lease will be greater than offset through the growth of european imports.
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Extra resources for Banana Split: How EU Policies Divide Global Producers
A S T I M E G O E S B Y 49 Carl Menger termed goods that directly relieve some dissatisfaction, such as water or food, goods of the first order. They can also be called consumer goods. Goods whose value comes from their aid in producing goods of the first order, such as traps and barrels, are called goods of a higher order, producer goods, or capital goods. Note that this distinction does not exist in the goods themselves, but in human thought and planning. If I collect barrels as objects of art, then they are, for me, consumer goods.
And yet we can’t explain the fact that the owner would turn down an offer for one-and-a-half times his purchase price without taking into account that idea. The subject matter of economics is human plans and the actions resulting from those plans. We must study the various options which the world presents to human actors, as they themselves interpret them. We must consider the meaning that they attach to the ends that they seek to achieve by choosing one of these options. The central concept of economics is the planned actions of real human beings, and it advances by analyzing the thinking used in making those plans.
If Scotland produces wool and Spain makes wine, and the citizens of the two countries trade for the goods not available from domestic industry, both countries’ inhabitants will be better off. But what of the case where one country, perhaps due to geographical disadvantage and an uneducated populace, is worse at producing everything than some other country is? Shouldn’t the more backward nation erect trade barriers, allowing domestic industry to develop? How can it possibly offer the more advanced nation anything in trade?
Banana Split: How EU Policies Divide Global Producers by United Nations