Jacob Viner's partial equilibrium analysis, based upon trade creation and trade diversion effects, is undoubtedly useful but is only of elementary character. The writers like R.G. Lipsey and J. Vanek have analysed the theory of customs union in the general equilibrium framework. 1. The Lipsey Model of Customs Union: In the partial equilibrium approach, Jacob Viner pointed out that trade [...]
In this article we will discuss about:- 1. Dynamic Effects of Customs Union 2. Theory of Customs Union as the Theory of Second Best 3. Intra-Industry Trade and Customs Union. Dynamic Effects of Customs Union: The static effects of customs union are- (i) trade- creation and (ii) trade-diversion. The static effects are basically concerned with reallocation of production and consumption. [...]
Here is an essay on ‘European Union’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘European Union’ especially written for school and college students. Essay # 1. Introduction to European Union: The most prominent development in the field of economic integration has been the organisation of European Economic Community (EEC) now known as European [...]