Global Trade:1. Global Trade: Lessons. Texts. Main Text: Required: International Economics: Theory & Policy, Krugman , P.R., and Obstfeld , M., 8 th Edition, Pearson-Addison-Wesley. Recommended: International Economics, Husted, S., and Melvin, M., 8 th Edition, Addison-Wesley.
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Main Text: Required:
This lesson provides us with an overview of global trade: transactions of merchandise in the form of exports and imports, the place of trade in international economics and the balance of payments, the composition and dynamics of trade, the link between globalization and trade.
Acknowledgment: The Course Developer took help of different sources as referred while preparing the study materials. When a considerable number of diagrams have been developed to enhance interest in the subject, many diagrams come from the required text for the convenience of the students.
International trade means global trade that comprises exports and imports of merchandise.
- Caves, Frankel, & Jones 2007
Source: U.S. Bureau of Economic Analysis
Trade balance = net exports <0 since the mid 1970s
Trade enters the output equation as net exports (exports – imports)
1) World War I
2) Great Depression of the 1930s
3) World War II
Source: Richard E. Baldwin and Phillipe Martin, “Two Waves of Globalization: Superficial Similarities, Fundamental Differences,” in Horst Siebert, ed., Globalization and Labor (Tubingen: Mohr, 1999).
Source: Organization for Economic Cooperation and Development
Note: the lower trade share of the U.S. should be judged with caution. Inter-state transactions of merchandise in this largest economy are not counted in this calculation.
Source: World Trade Organization (WTO)
Source: United Nations Council on Trade and Development
Over the past 40 years, the exports of developing countries have shifted toward manufactures. More than 90 percent of the exports of China, the largest developing economy and a rapidly growing force in world trade, consists of manufactured goods.
Source: U.S. Department of Commerce