global economic integration trade and investment
DESCRIPTION
Global Economic Issues Global Trade Globalization World Trade Organization (WTO) Organization for Economic Co- operation and Development (OECD) Regional trade regimes Global Development North-South Gap World Bank and other development agencies Non-governmental organizations (e.g. CARE, Oxfam, etc.) 4/4/2008TRANSCRIPT
Global economic integration
Trade and investment
Today
News Your research paper: Reform the UN Trade and Investment (Henry Nau, chapter
10) Key terms Theory of Comparative Advantage What does trade actually do?
More peaceful relations? Contribute to domestic development?
4/4/2008
Global Economic Issues
Global Trade
GlobalizationWorld Trade
Organization (WTO)
Organization for Economic Co-operation and Development (OECD)
Regional trade regimes
Global Development
North-South GapWorld Bank and
other development agencies
Non-governmental organizations (e.g. CARE, Oxfam, etc.)4/4/2008
Some key terms I
Henry Nau, chapters 8-10
Marshall Plan: U.S. aid to Europe after WW II, 1947-1951 Newly industrializing countries (‘Asian Tigers’)
Taiwan, Singapore, Hong Kong, South Korea Import substitution: a policy designed to produce
imported products at home Protectionism: policy designed to limit imports Strategic trade: state policies to maximize trade Mercantilism: realist trade policy (focused on national
interests)4/4/2008
Some key terms II
Henry Nau, chapters 8-10
Tariffs: taxes on imports Non-tariff barriers: measures designed to discourage
imports Most-Favored Nation Status (MFN): Lower tariffs have to
be offered to all WTO members (WTO rule) Generalized System of Preferences (GPS): Tariff
preferences for developing nations. TRIPs: trade related intellectual property issues (WTO) Washington Consensus: market-based restructuring of
economies4/4/2008
Division of Labor
How does specialization create wealth? streamlining production (Nau, p. 259) Efficient use of labor force ‘Invisible hand’ of the market
Main conditions Free trade and markets Limited government: education and
defense4/4/2008
Does trade destroy jobs?
Nau, p. 264/5 Claim: Trade destroys low-skilled labor,
creates higher-skilled jobs. Trade increases productivity and efficiency.
Claim: There is no ‘race to the bottom.’ Only low-skilled labor looses out. Trade eventually levels the playing field on
wages (Hecksher-Ohlin theory). What do you think?
4/4/2008
Next week
Development
Why are some countries richer than others? What explains development? What are the sources of underdevelopment?
Domestic: corruption, infrastructure International: terms of trade, legacy of colonial rule
How/when does trade contribute to development?
4/4/2008