罗伯特凯伯国际经济学

Internationaleconomics,15eRobertCarbaugh©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheInternationalEconomyandGlobalizationChapter1©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.ChapterOutline

(1of2)GlobalizationofEconomicActivityWavesofGlobalizationTheU.S.asanOpenEconomyWhyisGlobalizationImportant?GlobalizationandCompetitionCommonFallaciesofInternationalTradeDoesFreeTradeApplytoCigarettes?©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.ChapterOutline

(2of2)IsInternationalTradeanOpportunityoraThreattoWorkers?BacklashAgainstGlobalizationSummaryKeyConceptsandTermsStudyQuestions©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheInternationalEconomy(1of2)HighdegreeofeconomicinterdependenceNonationexistsinaneconomicisolationAllaspectsofanation’seconomyarelinkedtotheeconomiesofitstradingpartnersReflectsthehistoricalevolutionoftheworld’seconomicandpoliticalorderComplexanditseffectsuneven©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheInternationalEconomy

(2of2)HighdegreeofeconomicinterdependenceStepstowardinternationalcooperationMutuallyadvantageousfortradingnationsSpecialization,efficienciesoflargescaleproductionWidervarietyofproductsatlowercostProtectionistpressuresDevelopingnationsLiberalizedtradingsystem–servestokeepthedevelopingnationsinpoverty©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.GlobalizationofEconomicActivity(1of2)GlobalizationGreaterinterdependenceCountriesandtheircitizensInternationalflowsGoodsandservicesPeopleInvestmentsinequipment,factories,stocks,bondsNon-economicelementsCultureandtheenvironment ©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.GlobalizationofEconomicActivity(2of2)Whatforcesaredrivingglobalization?

TechnologicalchangesMultilateraltradenegotiationsContinuingliberalizationoftradeandinvestmentWidespreadliberalizationofinvestmenttransactionsDevelopmentofinternationalfinancialmarkets ©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(1of11)FirstWaveofGlobalization:1870-1914DecreasesintariffbarriersTechnologicaldevelopmentsDecliningtransportationcostsShiftfromsailtosteamships;railwaysDrivenbyEuropeanandAmericanbusinessesandindividuals©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(2of11)FirstWaveofGlobalization:1870-1914(cont)ExportsasashareofworldincomeNearlydoubledto8%Percapitaincomesincreased1.3%peryearPrevious50years:0.5%peryearNationsthatactivelyparticipatedinglobalizationBecametherichestcountriesintheworldBroughttoanendbyWorldWarI©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(3of11)TheGreatDepressionofthe1930sGovernmentspracticedprotectionismRaisedtariffsonimportsTriedtoshiftdemandintodomesticmarketsinordertoPromotesalesfordomesticcompaniesPromotejobsfordomesticworkersExportsasashareofnationalincomeFallsfrom8%to5%,undoing80yearsoftechnologicalprogressintransportation©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(4of11)SecondWaveofGlobalization:1945–1980HorrorsoftheretreatintonationalismrenewedincentiveforglobalizationFallingtransportationcostsDecreasepreviouslyestablishedtradebarriersTradeliberalization–notuniformWhichcountriesparticipated?MainlydevelopedcountriesWhichproductswereincluded?Manufacturedgoods©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(5of11)TradeliberalizationdiscriminatedDevelopedcountries,manufacturedgoodsLargelyfreedofbarriersGreatlyincreasedtheexchangeofmanufacturedgoodsRaisedtheincomesofdevelopedcountriesDevelopingcountriesExportsfromdevelopingcountriesfacednobarriersonlyforagricultural/primarygoodsthatwerenotproducedindevelopedcountriesExportsofmanufacturedgoods-sizablebarriers©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(6of11)SecondWaveofGlobalization:1945–1980(cont)NewkindoftradeRichcountryspecializationinmanufacturingnichesGainedproductivitythroughagglomerationeconomiesFirmsclusteredtogetherSomeclustersproducedthesameproductOtherswereconnectedbyverticallinkagesAgglomerationeconomiesBenefitsonlythosethatareintheclustersNobenefitforthosethatareleftout©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(7of11)SecondWaveofGlobalization:1945–1980(cont)MostdevelopingcountriesDidnotparticipateinthegrowthofglobaltradeinmanufacturingandservicesContinuingtradebarriersindevelopedcountriesUnfavorableinvestmentclimatesAntitradepoliciesindevelopingcountriesDependenceonagriculturalandnatural-resourceproductsDevelopingcountriesasagroupwerebeingleftbehind;Worldinequality©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(8of11)LatestWaveofGlobalization,beganin1980ManydevelopingcountriesparticipatedledbyChina,India,andBrazilEnteredtheworldmarketsformanufacturedgoodsOtherdevelopingcountriesIncreasinglymarginalizedintheworldeconomyDecreasingincomesIncreasingpovertySignificantinternationalcapitalmovements©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(9of11)LatestWaveofGlobalization,beganin1980(cont)SomedevelopingcountriesCompetitiveadvantageinlabor-intensivemanufacturingBangladesh,Malaysia,Turkey,Mexico,Hungary,Indonesia,SriLanka,Thailand,andthePhilippinesTariffcutsLowerbarrierstoforeigninvestmentTechnologicalprogressintransportationandcommunicationsProtectionistpoliciesindevelopedcountries©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(10of11)LatestWaveofGlobalization,beganin1980(cont)WorldMoreglobalized-internationaltrade,capitalflowsLessglobalization-laborflowsForeignoutsourcingCertainaspectsofaproduct’smanufactureareperformedinmorethanonecountryManufacturingmovedtowherevercostswerelowestJoblossesforblue-collarworkersCriesforthepassageoflawstorestrictoutsourcing©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Table1.1

ManufacturinganH-PPavilion…©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Table1.2

GlobalizationGoesWhiteCollar©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WavesofGlobalization(11of11)LatestWaveofGlobalization,beganin1980(cont)Bythe2000s,foreignoutsourcingofwhite-collarworkInformationAgeDigitization,Internet,andhigh-speeddatanetworksaroundtheworldSendingupscalejobsoffshoreAccounting,chipdesign,engineering,basicresearch,andfinancialanalysisForeignoutsourcingReducecostsofagivenservice:30to50%©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(1of8)TradepatternsOpenness

Roughmeasureoftheimportanceofinternationaltradeinanation’seconomyNation’sexportsandimportsasapercentageofitsGrossDomesticProduct(GDP)©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Table1.3

FruitsofFreeTrade:GlobalFruit...©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(2of8)Openness

Largecountries–lowermeasuresofopennessLessreliantoninternationaltradeManyfirmsinlargercountriescanattainanoptimalproductionsizewithouthavingtoexportduetothepopulationandeconomicsizeSmallcountries–highermeasuresofopenness©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Table1.4

Exports&Importsasa%ofGDP...©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(3of8)OpennessoftheU.S.economy,1890to2013Lessopentointernationaltrade,1890to1950Relativelyhighopennessinthelate1800sRiseinworldtrade:technologicalimprovementsintransportationandcommunicationsTwoworldwars+GreatDepressionofthe1930sReduceddependenceontradeNationalsecurityreasonsProtecthomeindustriesfromimportcompetition©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(4of8)OpennessoftheU.S.economy,1890to2013(cont)AfterWorldWarII-negotiatedreductionsintradebarriersRisingworldtradeTechnologicalimprovementsinshippingandcommunicationsU.S.tradeIn1890,mostlyrawmaterialsandagriculturalproductsToday,manufacturedgoodsandservicesU.S.producersmoreaffectedbyforeigncompetitiontodaythan100yearsago©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Figure1.1

OpennessofU.S.Economy,1890-2013©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Table1.5

Top10Countries,U.S.Trades,2012©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(5of8)LabormobilityinU.S.hasnotriseninpast100years1900,14%ofU.S.population:foreignborn1920sto1960s–immigrationsharplycurtailedForeign-bornU.S.population:6%1960s,liberalizedrestrictions;By201412%theU.S.populationwasforeignbornForeigners:14%percentofthelaborforceHalf–fromLatinAmericaOnequarter–Asians©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(6of8)CapitalflowstotheU.S.ForeignownershipofU.S.financialassetsRisensincethe1960s1970s,OPEC-investmentsinU.S.financialmarkets1980s,majorflowsofinvestmentfundstoU.S.Bylate1980sU.S.-consumingmorethanitproducedNetborrowerfromtherestoftheworld©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(7of8)InternationalbankingAveragedailyturnoverinforeign-exchangemarketToday:almost$4trillion1986:$205billionThetradingdaybeginsinTokyoandSydneyandmovesaroundworldinunbroken24hourcycleLondon-thelargestcenterforforeign-exchangetrading©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.TheU.S.asanOpenEconomy(8of8)CommercialbankingU.S.banksWorldwidebranchnetworks,1960sand1970sLoans,payments,foreign-exchangetradingForeignbanksIncreasedpresenceinU.S.,1980sand1990sToday:250foreignbanksSecuritiesfirms-globalizedtheiroperationsBy1980s,U.S.governmentsecuritiesTradedona24-hourbasis©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WhyisGlobalizationImportant?(1of2)TheLawofComparativeAdvantage:EachnationgainsbydoingthingsforwhichtheyhavearelativeadvantageIfagoodorservicecanbeobtainedmoreeconomicallythroughtrade,makessensetotradeforit,notproduceitInternationaltradealsogainsfromcompetitiveprocessCompetitionessentialtoinnovation,efficientproductionGlobalcompetitioncanresultinhighcostdomesticproducersexitingthemarket©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.WhyisGlobalizationImportant?(2of2)OpeneconomiesMorecompetitionwhichlowerspricesMorefirmturnoverImprovementsfortheindustryEconomicgrowthrates-closerelationto:OpennesstotradeEducationCommunicationsinfrastructure©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.Figure1.2

TariffBarriersvs.EconomicGrowth©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.GlobalizationandCompetition(1of3)Globalizationandfreetradecanprovidebenefitstomany,butcaninflictburdensonothersKodakhad90%cameramarketsharebutcomplacent;didnotaddresscompetition,newtechnologyFujienteredU.S.marketwithlowerpricedfilmandsupplies;KodakignoredthemBymid-1990s,Fujihad17%ofmarket,Kodak,75%Kodakfinallydevelopeddigitalcamera,butundercutbysmartphones;filedforCh11bankruptcyKodakisnowasmalldigitalimagingcompany©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.GlobalizationandCompetition(2of3)Globalizationandfreetradecanprovidebenefitstomany,butcaninflictburdensonothers(cont)Schwinnbicyclesthestandardoftheindustry,survivingtheGreatDepressionwithcontinuousinnovation;bikesdurable,stylish,butheavyCompetitorsproducedmountainbikes&racingbikes;cheapimportsenteredmarketSchwinnmovedproductiontonon-unionstate;obtainedpartsfromforeigncountries,butunevenquality;Schwinndeclaredbankruptcy;firmpurchasedSchwinnbicyclestodaymadeinChina©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.GlobalizationandCompetition(3of3)Globalizationandfreetradecanprovidebenefitstomany,butcaninflictburdensonothers(cont)Once,150USmanufacturersoftelevisionsImportsfromJapan,China,SouthKorea,othersFlatpanelTVslighter,cheapertoshipfromAsiaBy2000,noUSTVmanufacturersButcostsinChinarising,USfactoriesmorecompetitive;2012,ElementElectronicsbecameonlyTVmanufacturerinU.S.;allpartsimported,assembledinDetroitAssemblyinDetroityieldsdistributionefficiencies;avoidstariffs;TVsshippedinboxeswitha“MadeinAmerica”logo©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.CommonFallaciesofInternationalTrade(1of2)“Tradeisazero-sumactivity”False;Bothpartnersgainfromtrade“Importsreduceemploymentandburdentheeconomy,whileexportspromotegrowthandemployment”False;Sourceofthisfallacyisthefailuretoconsiderthelinkbetweenimportsandexports©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.CommonFallaciesofInternationalTrade(2of2)“Tariffs,quotas,andotherimportrestrictionswillsavejobsandpromoteahigherlevelofemployment”False;failuretorecognizethatareductioninimportsdoesnotoccurinisolationFreetradeIncreasescompetition,lowerspricesMakesbetterproductsavailabletoconsumersResultsinhigherconsumption©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.DoesFreeTradeApplytoCigarettes?Usually,freetraderesultsinhigherconsumption;butwithcigarettes,isthisagoodthing?Somecontendthatcigarettesarenotnormal“goods”butareinfact“bads”requiringtheirownsetofregulations;cigarettemanufacturersdisagreeDistinguishbetweenregulatingcigarettesforpublichealth,andregulatingthemtoprotectdomesticmarkets©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.InternationalTrade:OpportunityorThreattoWorkers?

(1of3)InternationaltradebenefitsmanyworkersbutnotallworkersbenefitCheaperconsumptiongoodsEmployers–bettertechnologies/equipmentWorkers-moreproductiveExports-jobsandincomefordomesticworkersCheapImports-RisingunemploymentHurtsunskilledworkersinimport-competingindustries–lobbyingrestrictingimports©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.InternationalTrade:OpportunityorThreattoWorkers?

(2of3)InternationaltradeDomesticprices-alignedwithinternationalpricesWagesincreaseWorkerswhoseskillsarescarceWagesdecreaseWorkerswhofaceincreasedcompetitionJobslostinoneindustryReplacedbyjobsgainedinanotherindustry©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.InternationalTrade:OpportunityorThreattoWorkers?

(3of3)Thelong-runeffectoftradebarriersDoesnotincreasetotaldomesticemploymentReallocatesworkersAwayfromexportindustriesTowardlessefficient,import-competingindustriesLeadstoalessefficientutilizationofresourcesInternationaltradeJustanotherkindoftechnologyAddsvaluetoitsinputs©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.BacklashAgainstGlobalization(1of3)Proponentsoffreetradeandglobalizationsay:CountriesprosperNewideasandtechnologyflowfreelyaroundtheworldProductivitygrowthIncreasinglivingstandardsLowerconsumerpricesIncreasedvarietyofgoodsandservices©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.BacklashAgainstGlobalization(2of3)Criticsoffreetradeandglobalizationsay:BenefitslargecorporationsattheexpenseofaveragecitizensEnvironmentalistsElitisttradeorganizationslikeWTOmakeundemocraticdecisionsUnderminenationalsovereigntyonenvironmentalregulationUnionsUnfetteredtradepermitsunfaircompetition©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword-protectedwebsiteforclassroomuse.BacklashAgainstGlobalization(3of3)Criticsoffreetradeandglobalizationsay:(cont)HumanrightsactivistsWorldBankandInternationalMonetaryFundsupportgovernmentsthat:AllowsweatshopsPursuepoliciesthatbailoutgovernmentalofficialsattheexpenseoflocaleconomies©2015CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainp