Trade and Globalization key terms economic liberalism favoring

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 60 s • 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