Please enable JavaScript.

Coggle requires JavaScript to display documents.

The Trading System, Reading 3: Robert Gilpin, Global Political Economy,…

- - - - export goods produced by most abundant factor
      - import goods made by its least abundant fact
  - - - north-north trade
        
        Western European and U.S. trade
  - - - internationalization
      - intrafirm transfers
        
        American and Japanese
        trade
  - - - The United States aircrafts
      - Japan electronics
    - - the
        national culture and its influence on the purpose ofeconomic activities
      - The status of capital and labor
      - the nature ofef fective demand
      - the condition of supporting industries
      - the industrial structure of
        the economy
      - government policy
  - - - high-tech industries
        
        raise the skill level of the labor force
        
        increase human capital
        
        special industries do exist
        
        free trade is not optimal
        
        government intervention in trade matters can increase national welfare
- - - - 1980-1990
  - - - nation’s rate of unemployment.
        
        Western Europe unemployment.
        
        inflexible
        labor markets
        
        overly generous welfare programs
        
        highly restrictive macroeconomic
        policies within the European Monetary Union
- - - - reduction oftrade barriers on industrial products
      - reduction high tariffs in less developed
        countries
      - reduction of fishing subsidies
      - Increasing transparency in government procurement
      - duty-free access to ADC markets for the poorest countries
      - Reviewing WTO antidumping and antisubsidy rules
  - - - “freer and fairer” trade
      - the principle of multilateralism
      - no discrimination principle
      - Kennedy Round (1964–1967)
        
        reduction of trade barriers on manufactures
        
        Tokyo Round (1973–1979)
        
        reduction of nontariff f barriers
        
        The Uruguay Round,1986
        
        decrease many import quotas
        and subsidies.
        
        services, intellectual
        property rights, and foreign investment areas added
        
        agriculture, textiles, continues
        to be highly protected
        
        labor standards, the environment, and human rights - miscommunication
      - multilateral rules
  - - - different agenda
      - agricultural issue
        
        Japan
        
        EU
    - - the dangers of opening
        economies
- - - - increases
        competition in domestic markets
      - undermines anticompetitive
        practices
      - increases consumer choice
      - increases
        national efficiency
        
        national specialization
      - spread of echnology and know-how
      - increase the prospects ofworld peace
    - - high costs to an economy
      - a negative impact on income distribution
      - zero-sum game
        
        the protection of
        infant industries
        
        increase the cost ofinputs
        
        decreases competitiveness
        over the long term
      - threats to jobs, wages, and domestic social welfare
      - a threat to the environment