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Trade and Globalization

Trade and Globalization 1 Trade and Globalization TABLE OF CONTENTSTRADE AND Globalization .. 2 INTRODUCTION .. 2 A SNAPSHOT OF Trade .. 3 PRIMER 1: THE ECONOMICS OF international Trade .. 8 international Trade IN HISTORY .. 8 WHY DO NATIONS Trade ? .. 9 WHY DO NATIONS EXPORT? .. 10 CURRENCIES AND EXCHANGE RATES .. 13 WHY DO NATIONS IMPORT? .. 15 Trade SPECIALIZATION .. 17 THE THEORY OF COMPARATIVE ADVANTAGE .. 19 COMPARATIVE ADVANTAGE VERSUS ABSOLUTE ADVANTAGE .. 21 THE Trade BALANCE .. 23 PRIMER 2: GOVERNMENT REGULATION OF Trade ..26 EFFORTS TO MANIPULATE Trade FLOWS .. 26 IMPORT RESTRICTIONS .. 27 EXPORT SUBSIDIES .. 30 CONSEQUENCES OF Trade RESTRICTIONS .. 31 TARIFF DEBATES IN HISTORY .. 32 LIBERALIZATION: THE DEREGULATION OF international Trade ..34 LIBERALIZATION OF international Trade .. 37 MULTILATERAL Trade LIBERALIZATION: THE URUGUAY ROUND AND THE WORLD Trade ORGANIZATION.

international trade experienced a contraction of 12.2 percent in 2009—the steepest decline since World War II—trade is again on the upswing.2 As a result of international trade, consumers around the world enjoy a broader selection of products than they would if they only had access to domestically made products.

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