World Trade

Ch 1: World Trade

1. Issues of Concern:

a. Gains from trade

b. Pattern of trade

c. Protectionism

d. Balance of payments

e. Exchange rate determination

f. International policy coordination

g. International capital market

1. Benefits of Trade

a. Theoretical

i. Ricardo

b. Empirical

i. Since the 1950's trade is an increasing % of GDP in the US (10-25) and UK (30-60).

c. Historical

i. Progress of N Korea v S Korea

2. Measuring Integration

a. Physical Trade flows

b. Capital Flows

c. Labor Flows

d. Price similarities

3. Determinates of trade patterns

a. Size

b. Distance

c. Barriers

d. Boarders

4. US Trade

a.

b.

5. Developing country Trends

a. Manufacturing Exports has been on rise since the 1980s

b. Has been declining since the 1960s and flatlined in 1980

6. How big is world trade?

a. US #1 Trader

i. 10% of world exports

1. $1.8 Trillion/ 13% US production

ii. 15% of world imports

1. 2.5 Trillion/ 18% US production

b. Global- $35 Trillion > 50% of world production

i. Germany #2 Trader

ii. China #3

7. Growth of World trade

a. Exports are growing faster than World GDP

8. 60% of share employment is non-tradable

9. New Era of World Trade?

a. Rapid tech Change (rail, Steamships, Telegraph)

b. Business and financial