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CHAPTER 8Trade

INTERNATIONAL RELATIONS

Seventh Edition

Joshua S. Goldstein

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International Trade

• Mercantilism

• Liberalism

• Globalization

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Global Markets

• Free trade• Tariffs• Comparative advantage• Centrally planned economies• Protectionism• Balance of trade• Interdependence

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Balance of Trade

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Trade Strategies• Self-reliance or autarky• Protectionism• Non-tariff barriers• Quotas• Subsidies• Regulations• Dumping• Economic nationalism• Industries• Interest groups

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World Trade Organization (WTO)

• 1947, General Agreement on Tariffs and Trade (GATT) turns into WTO

• Maintains low tariffs• Rounds of negotiations, such as the

Uruguay Round and the Kennedy Round

• Most-favored nation status

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Bilateral and Regional Agreements

• North American Free Trade Agreement (NAFTA)

• Free Trade of the Americas (FTAA)• The Southern Cone Common Market

(Mercosur)• Andean Common Market• Cartels: Organization of Petroleum

Exporting Countries (OPEC)

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OPEC Members and Oil Production, December 2004