The Growth of Globalization. Since the end of WWII, world trade has grown much faster than world output Openness Index = (Exports + Imports)/GNP The index is a measure of trade Since 1945 (over 64 years) (Exports + Imports) > GWP GNP = gross national product GWP = gross world product.
Openness Index for select nations over time
graph taken from James Gerber, 2008, International Economics, 4th Edition, Pearson Education
China -- exchange rate policy and export expansion policies --- manufacturing
Taiwan – export expansion policies and manufacturing efficiency
Singapore – the “city state” --- assembly and manufacturing center
Malaysia – textiles, synthetics
Hong Kong – trade center --- HK has their own currency separate of the PRC