Core economies have had the best of two worlds both as consumers of primary

Core economies have had the best of two worlds both

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- Core economies have had the best of two worlds, both as consumers of primary commodities and as producers of manufactured articles, whereas the underdeveloped countries had the worst of both worlds, as consumers of manufacturers and as producers of raw materials. - If the world economy is such that it benefits core countries at the expense of the periphery, the latter should adopt protectionism.
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- Stolper-Samuelson theorem – international trade benefits the domestically abundant factor of production (land, labor or capital) and weakens the scarce factor. Unilateral Trade Order - Most-favored nation (MFN) principle – any negotiated reciprocal tariff reductions between two parties should be extended to all other trading partners without conditions. - The enactment of the US Reciprocal Trade Agreements Act in 1934 eventually put a stop to any further decline in international trade. Multilateralism: From the GATT to the WTO - International Trade Organization – originally conceived as one of the three pillars of the Bretton Woods system - Nations committed to a world of lowered tariffs decided to coordinate their actions under the auspices of the General Agreement in Tariffs and Trade (GATT). - Uruguay Round - most famous multilateral trade negotiations - It is global corporate capital, rather than states, which exercises decisive influence over the organization, location, and distribution of economic power and resources in the contemporary world economy. - The major outcomes of the trade negotiations were the agreements on trade-related investment measures (TRIMs), trade in services (GATS) and trade-related aspects of intellectual property rights (TRIPs). - After 50 years of rules-based trade negotiations, the Uruguay Round gave birth to a ‘real’ international trade institution, the World Trade Organization. Developing Countries and International Trade - Most of the developing countries did not manage to integrate into the post-World War II trading system successfully. - United Nations Conference on Trade and Development (UNCTAD) – to promote trade and cooperation between the developing and the developed nations. - While developing countries have opened up their service markets, their export of agricultural products is still blocked by advanced nations. - Without the liberalization of agriculture, it is simply impossible for developing nations to fully integrate into the global economy. - WTO as the means by which industrialized countries can gain access to the markets of developing countries. WHY PEOPLE CAN’T FEED THEMSELVES? - To the colonizers of Africa, Asia, and Latin America, agriculture became merely a means to extract wealth much as gold from a mine--on behalf of the colonizing power. Strategies of Colonizers - Direct takeover of the land by largescale plantations growing crops for export.
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