1. Or: How not to be scared by fancy words
Basic economics
Or: How not to be scared by fancy words

2. Don‘t get scared!
Knowledge is not the key if you only have 5 minutes anyway!

3. Actors Countries: Set regulations for their own economic benefit
Companies: Want to make a lot of profit
International organizations: Want to set international regulations to benefit their members

4. Motions that come up
This House believes that states should focus on negotiating bilateral trade agreements over large, regional agreements such as the TPP and RCEP
This House Believes That developing nations should distribute, as a dividend to citizens, income derived from nature resource extraction
THBT WLDs should enforce their labour and environmental standards on the whole production chain on goods imported to their country.
This House would temporarily and significantly relax minimum labour standards in times of unusually high unemployment, including workplace health and safety standards, minimum wage, working hours restrictions etc.
THW would implement a universal basic income (UBI)
THBT international financial institutions (e.g. the World Bank, IMF) should not make economic liberalisation a condition of loans or aid for developing countries

5. Keep in mind Motions are often connected to: National politics
International politics
Development
Social issues
Moral questions
Explain incentives of the actors you talk about!

6. What we will talk about International organizations
IMF
WTO
Basic economic concepts
Tariffs
Opportunity cost
Arguments to make in a debate
Are multinational companies beneficial for development?
Why do companies (not) change their place of production?
Why is a free market (not) beneficial?

7. International Monetary Fund (IMF) & World Bank (WB)
Goals:
Stabilizing currencies
Development
Free Trade
Operation:
Dominated by WLDs – veto by the US
Give out loans
Conditions often involve austerity, trade liberalisation

8. World Trade organization (WTO)
Aim:
Trade liberalisation
Development
Operation:
Negotiating trade deals and tariffs
Non-discrimmination principle between members
Dispute settlement

9. Tariffs High tariffs  hard to import things
Low tariffs  easy to import things
Usually countries would try to negociate mutually beneficial tariff deals
Problems with that are:
Difference in industries  hard to say whether an agreement is fair
Harder to enforce for smaller countries

10. Opportunity cost David Beckham is a great lawn mower
He can mow his lawn in two hours

11. Opportunity cost
Instead of mowing his lawn, David could spend the two hours filming a commercial and make £10,000
 David‘s opportunity cost of mowing his lawn is £10,000
His oc is how much money he cd make by not mowing his lawn

12. Opportunity cost Neighbour Scotty can mow David's lawn in 4 hours.
He could also work at McDonald's for 4 hours and make £8 per hour.
 Scotty's opportunity cost of mowing David's lawn is £32

13. Opportunity cost
Who is better at mowing the lawn?

14. Opportunity cost Who is better at mowing the lawn?
David Beckham. He can do it in 2 hours rather than 4. He has an absolute advantage in mowing the lawn.

15. Opportunity cost Who is better at mowing the lawn?
David Beckham. He can do it in 2 hours rather than 4. He has an absolute advantage in mowing the lawn.
Who has a comparative advantage in mowing the lawn?

16. Opportunity cost Who is better at mowing the lawn?
David Beckham. He can do it in 2 hours rather than 4. He has an absolute advantage in mowing the lawn.
Who has a comparative advantage in mowing the lawn?
Scotty. He can do it at a lower opportunity cost (£32 versus £10,000).

17. Opportunity cost Gains from specialization and trade:
If David pays Scotty about £50 (more than his McDonald’s salary) to mow his lawn, he can film his commercial.
Both are better off than in a situation where the best lawn mower in the world, David Beckham, mowed his lawn.

18. Are MNCs beneficial for development?
Benefits:
Investment  employment
 continuing effect
Invrastructure & Health (they want to be seen as nice)
Already set up industry rather than having to develop something new
Harms:
Competing with local productions
If they get too powerful they can influence politics  bad regulations of industry
Race to the bottom
Exploitation of long regulations  environmental and health effects on all of the population

19. Why do companies (not) change their place of production?
Changing:
Lower regulations
Cheaper labor
Security
Tariffs to other countries
Changing:
Cost of moving
Cost of educating new workers

20. Free market Benefits: Enables specialisation (comparative advantage)
Lower prices for consumers (resources imported cheaperlower costslower prices)
Increased competition between firmsefficiency
Enables economies of scale
Harms:
Structural unemployment short run (shift between industries). Hard for people to specialise in new industries.
Environmental harm (if legislation if poor)
Uncompetitive economies are at a disadvantage (protectionism required)