Trade and Globalization

key terms

• “economic liberalism”• favoring free flow of trade and investment

• “mercantilism” or “protectionism”• protecting domestic industries with subsidies, tariffs, and non-tariff

barriers

comparative advantage

• specializing and trading benefits all?

Liberal International Economic Order

• GATT• Bretton Woods institution for the reduction of tariffs

• WTO• replaces GATT in 1995

• expanded and given teeth--authorizes retaliation

The future of international trade

• increasing protectionism with declining US hegemony?

Globalization

• Interconnection with the world

sources of globalization

• liberal trade/pro export policy

• communications technology• TV, computer/internet, phone

• transport• air travel, containerization

• immigration

Immigration

• The US--post 1965• end of nation quotas, more “chain” migration

• Europe in the 60s• guest-workers and former colonies

• anti-immigrant parties

Cultural Homogeneity?

Global Village or Global Pillage?

• WTO may determine that environmental, health, labor standards are really NTBs

• examples of dolphin-safe tuna and turtle-safe shrimp

• Tariffs reduced more on poor countries’ small producers than rich countries’ large agricultural producers

• But poor countries winning at WTO against US cotton