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The production and trade structure

8 important questions on The production and trade structure

What is the international production and trade structure

It is composed of the set of rules and relationships between states, IOs, businesses and NGOs that influence what is produced and sold, where, by whom, and what price. It links nation states and other actors, furthering their interdependence and mutual benefits but also generating tensions between them.

How come that the production process has also become much more fragmented?

Due to specialization and outsourcing

What do the economic liberals/mercantilists/structuralists thinks of trade?

Economic liberals tend to emphasize that the rational thing for states to do is to agree on a common set of rules that will maximize the gains from trade in a competitive global economy.
Mercantilists and structuralists agree that there are economic gains to be made from trade, but they insist that trade is a much more complex and controversial topic because of the way it contributes to national power and how it benefits some groups more than others

Economic Liberals and trade

Many liberal ideas about trade are rooted in the late eighteenth and early nineteenth-century views of Smith and Ricardo. Ricardo showed with the law of comparative advantage demonstrated that free trade increased efficiency and had the potential to make everyone better of (opportunity cost)

The Doha 'the development round'

In 1999 and ended in deadlock,in 2001 they tried again. From the beginning many developing countries complained that agreements reached in the Uruguay round had not resulted in significant gains for them. They also argued that new trade agreements could be reached, the developed nations would have to make a concerted effort to include developing nations in the negotiation process.

Regional trade blocs.

Regional trade agreements do have less bureaucracy, fewer members and more room to account for idiosyncrasies of partner states. So it is a formal intergovernmental collaboration between two or more states in a geographic area. Technically RTA violate the GATT and WTO principle of non-discrimination but they are legal entities. RTA can produce more efficient production within the bloc, either while infant industries are maturing or in response to more competition from outside industries.

North-South trade issues

Tensions between the Northern industrialized and Southern developing nations over trade issues are not new. in 1973--> the G77 (new economical order) they demanded a TNC code of conduct, to give developing nations control over their own resources along with a stronger voice in GATT decision making.Developing nations should grow their way out of debt by liberalizing their trade policies and opening up their economies to FDI. this serves as a justification for structural adjustment policies- conditions the IMF and the world bank required developing nations to adhere to when they borrowed money from these institutions.

Structuralist and neomercantilism versions of trade and globalization

struc--> WTO has perpetuated the exploitative relationship between North and South it has also generated significant inequality between and especially within the developing nations.

While a number of mercantilists support economic liberal policies and globalization to the extent that they serve state interests, most believe that the largest gains from trade have gone to the biggest industrialized and industrializing countries.

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Introduction to international political economy

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The production and trade structure

8 important questions on The production and trade structure

What is the international production and trade structure

How come that the production process has also become much more fragmented?

What do the economic liberals/mercantilists/structuralists thinks of trade?

Economic Liberals and trade

The Doha 'the development round'

Regional trade blocs.

North-South trade issues

Structuralist and neomercantilism versions of trade and globalization

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