Lecture 6 Flashcards
What are the three perspectives on International Trade?
What is the history of free trade?
What is the Kindleberger spiral?
Who led the world into free trade? When?
What is the GATT?
Why did world trade expand in the 1950’s?
What are policies for argiculture?
What did in the 1950’s-1990’s change regarding trade policy?
What is (history of) the WTO?
What are recent trends in Regional Trade Blocks?
Who wins and who loses regarding global trade?
What is the populist backlash regarding globalization?
What is the liberal view on trade?
Liberals believe that international trade is good. A liberal scholar Ricardo created the law of comparitive advantage, where it shows that everyone would get richer through international trade.
What is the mercantilist view on trade?
In the past mercantilist countries aggresively tried to maximize their trade surplus.
Now neomercantilist are challenging the idea of comparative advantage, since many people do not want to change sectors.
In many democratic countries people also expect to be protected from layoffs because of international competition.
Current mercantilists support liberal trade policies, on the condition that they state wins out. By often only liberalizing trade where they have not much competition.
What is the structualist view on trade?
They believe that trade drove European states towards imperialism. Scholars like Wallerstein point to the world systems theory (core, semi- , and perifphery).
Structualists believe that trade sanctions are unethical because they hurt ordinary citizens.
They also believe that long-term consequences of the comperative advantage are not well enough described.
What is the constructivist view on trade?
No explicit view on trade, though they do believe that NGO’s can shape how we think about free trade. And how we look at what we should trade and produce locally.
What do some historians believe helped start fuel WW2?
The lack of trade after the great depression.
What were the two pricinples of GATT?
Reciprocity (all lower trade barriers together) and nondiscrimination (treat all goods the same)
What is MFN and national treatment?
MFN (Most Favored Nation), treating a nations good or local goods (respectivly) over others.
What is MFN and national treatment?
MFN (Most Favored Nation), treating a nations good or local goods (respectivly) over others.
What are RTA? What was granted by GATT for these RTA’s?
Regional Trade Agreements, they were not covered by GATT and thus could incurage more cooperation.
How did countries try to limit foreign competition after GATT? What was created to stop this?
Countries tried to enforce weird and unneccesary rules that local companies could easily follow but was made difficult for foreign competitors. The Tokio round of GATT was started to stop this.
How did countries try to limit foreign competition after GATT? What was created to stop this?
Countries tried to enforce weird and unneccesary rules that local companies could easily follow but was made difficult for foreign competitors. The Tokio round of GATT was started to stop this.
What are VER’s?
Volunarty Export Restraints
