How Beneficial is Free Trade

How Beneficial is Free Trade - How Beneficial is Free...

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How Beneficial is Free Trade? The Costs and Benefits of the Global Free trade Regime 06/02/2008 15:04:00 OUTLINE The contemporary free trade debate The logic of comparative advantage What are the costs and benefits of free trade Does the IMF and WTO make trade more fair or stable? Free Trade Debate Became mainstream and divisive in 1992 US presidential elections – Bill Clinton, H. Ross Perot and G.H.W. Bush make free trade a key issue o Clinton pushes and wins approval for NAFTA – North American Free Trade Agreement o After it was passed, the US set a course that was hard to change o Who was right? about the outcomes of free trade? o After 1992, tariff reductions remain constant in their decline Before 1970, the rate was declining rapidly o Growth rates since the 60’s have dropped from GDP growth rates of 2-9% back then down to 1-4% in the 1990s. Except for E. Asia, which has greatly accelerated, ending with a GDP growth rate of 7% (HUGE) The logic of comparative advantage Comparative Advantage
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Cameras Output ( workers ) Computers Output ( worker s ) Japan 900 ( 100 ) 300 ( 100 )
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United States 400 ( 100 ) 200 ( 100 )
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This note was uploaded on 04/14/2008 for the course POLY SCI 7 taught by Professor Ginjer during the Winter '08 term at UCSB.

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How Beneficial is Free Trade - How Beneficial is Free...

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