CHAPTER 8 Trade INTERNATIONAL RELATIONS Seventh Edition Joshua

CHAPTER 8 Trade INTERNATIONAL RELATIONS Seventh Edition Joshua S. Goldstein Pearson Education, Inc. © 2006

International Trade • Mercantilism • Liberalism • Globalization Pearson Education, Inc. © 2006

Global Markets • • Free trade Tariffs Comparative advantage Centrally planned economies Protectionism Balance of trade Interdependence Pearson Education, Inc. © 2006

Balance of Trade Pearson Education, Inc. © 2006

Trade Strategies • • • Self-reliance or autarky Protectionism Non-tariff barriers Quotas Subsidies Regulations Dumping Economic nationalism Industries Interest groups Pearson Education, Inc. © 2006

World Trade Organization (WTO) • 1947, General Agreement on Tariffs and Trade (GATT) turns into WTO • Maintains low tariffs • Rounds of negotiations, such as the Uruguay Round and the Kennedy Round • Most-favored nation status Pearson Education, Inc. © 2006

Bilateral and Regional Agreements • North American Free Trade Agreement (NAFTA) • Free Trade of the Americas (FTAA) • The Southern Cone Common Market (Mercosur) • Andean Common Market • Cartels: Organization of Petroleum Exporting Countries (OPEC) Pearson Education, Inc. © 2006

OPEC Members and Oil Production, December 2004 Pearson Education, Inc. © 2006