Notes - 11/5/07 • The Global Trading System ○ Late 19th...

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11/5/07 The Global Trading System Late 19 th century – first era of globalization No formal institutions but high levels of openness; UK leadership Contrast with 1920s and 30s era (i.e. Smoot-Hawley tariff in US) Barriers to investment lead to global economic collapse Slow recovery of trade in 60s-70s 1970s – beginning of dramatic increases in trade; rise of Japan; multi-national corporations (MNCs); falling transportation costs 1980s-90s: further increases in trade openness in both developed and developing nations Hegemonic decline, but continued progress in openness (Oatley Ch2) Rise of regional and bilateral trade agreements (EU, NAFTA) The nature of Contemporary Trade Comparative advantage assumes that national endowments are fixed – but countries often attempt to create comparative advantage Trade also allows firms to take advantage of economies of scale Thus, much contemporary trade is between nations with similar
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This note was uploaded on 03/19/2008 for the course POLI 150 taught by Professor Mosley during the Fall '08 term at UNC.

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Notes - 11/5/07 • The Global Trading System ○ Late 19th...

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