By Miroslav Jovanovic
This article brings evolutionary economics to undergo upon monetary geography in a coordinated examine of the eu Union.
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Extra resources for Evolutionary economic geography : location of production and the European Union
Neoclassical equilibrium economists lived in the world of free-market forces and outcomes based on the rational choices of economic agents that brought equilibrium outcomes in space (these outcomes are exemplified and defined by an absence of further change). Limited intervention was accepted in the cases with market failure. Geographers, on the contrary, looked at the (capitalist) market economy as something that is in a perpetual state of conflict and disequilibrium, rather than harmony. The nature and composition of the economic process and decisions by players are shaped and directed by the social, cultural, administrative and political context.
The Swiss do not have a heavy national leaning towards diseases or hypochondria, neither is Switzerland a significant navy- or merchant fleetstrong country whose national demand would justify or explain the location and specialisation in these types of production. The size of national demand is not always translated directly into the location of production at the same place. Accumulated past knowledge and technology, various expectations about its future path, prices and income all play a role in the selection of location, together with the size and growth of the market.
These protectionist deals were supposed to provide ‘breathing room’ and ‘advance notices’ to the endangered domestic textile-producing areas to adjust to a forthcoming liberal trading regime. Nonetheless, this protective shield did not prevent a steady fall in employment in textiles and clothing in the protected countries. The question is: how much longer does this industry in the developed world need in order to adjust? 24 While there was a controlled increase in imports of textiles and apparel from China from 2005, the overall textile imports in the EU, for example, changed little.