argumentation articles (brief overview)

Question 1

Bhagwati & Srinivasan

Answer 1

trade reduces poverty
- static argument: stolper-samuelson theorem where if country wants to openup to trade, it increases growth by exporting labor-intensive goods (where it has comparative advantage). that needs macroeconomic stability and thus inflation needs to be low (or nonexistent) and this reduces poverty as inflation hurts the poor the most
- dynamic argument: trade promotes growth, growth reduces poverty. (theorethical; effects of trade policy through two ‘fundamentals’ accumulation and innovation, evidence: China and India

Question 2

chang

Answer 2

developed countries did not develop on the basis of laissez-faire and free trade, concepts which they do promote to infant industries (developing countries).especially US and UK developed while using protectionist measures and subsidies, which developing countries aren’t “allowed” to use today (kicking away the ladder) while it has been shown that infant industries grew more and faster while using “negative” policies

Question 3

watson

Answer 3

Ricardo’s account of the use of comparative advantage between england and portugal is historically wrong. The anglo-portugese treaty turned portugal into somewhat a protectorate of britain where the latter had used its political power to create an unequal treaty. This was supposed to make-up for the trade deficit between the two, but in fact it gave Britain direct access to brazil’s gold, as brazil was tied to portugal through the third methuen treaties.

Question 4

rogowski

Answer 4

shows how stolper-samuelson theorem could explain political cleavages. factor endowments (labor, land, capital) will try to pursue free trade if its abundanct, and protectionism if scarce, resulting in;
–> advanced economy, high land-labor ratio = class conflict
–> advanced economy, low land-labor ratio = urban-rural conflict
–>backward economy, high land-labor ratio = urban-rural conflict
–>backward economy, low land-labor ratio= class conflict

Question 5

frieden

Answer 5

examines contradictory role of us in foreign economic policies which was result of competing national interests between isolationist and internationalist

Question 6

walter & sen

Answer 6

democratic vs authoritarian to pursue free trade, also electoral systems in free trade; majoritarian vs representational

Question 7

katzenstein

Answer 7

small european states differ from large ones in how they respons to economic change (also due through democratic corporatism after wars). flexible policies is result of international liberalization and domestic compensation

Question 8

narlikar

Answer 8

trade multilateralism has failed and core function of wto are in disarray
- negotiating agreements; doha deadlock
- transperancy; members are reluctant
- settling disputes; struggle because US doesn’t appoint new appolate body
–> move to variable geometry = members that want deeper integration should do so at own pace

Question 9

okonjo-iweala

Answer 9

need for reglobalization, not deglobalization. it is a mistake to focus on deeper economic indepence . economic interdepence is needed because people rely on trade and international cooperation is necessary for tackling global challeneges

Question 10

linsi

Answer 10

pandemic highlighted and accelarated already existing trends. global economy will likely further center around US-China where expension within the two spheres is likely to increase, while transaction between them is not