Issues in international trade

This paper discuss the issues in international trade looking at the number of issues of international trade such as trade, growth and sustainable development, Financing requirements for emerging economies etc.

Globalization, international trade and welfare

The term globalization is generally used to describe an increase in international transactions in markets for goods and services and factors of production, plus the growth and expanded scope of mar.y institutions that straddle international borders. Globalization has also led to a more liberal economic environment where issues such as labour standards, human rights, the environment, intellectual property rights, investment codes and competition policy are now considered legitimate topics in the trade debate. Free global markets cannot guarantee that air, water or energy resources are accurately priced for sustainable development since there is no mechanism to internalize environmental costs. Economic growth, although a powerful tool for increasing a country's wealth, cannot guarantee that such wealth will be equally distributed. What is needed is environmental and social policy to redistribute the benefits.
Recent empirical studies show that there are clear signs of income convergence among countries that integrate more fully with the world economy but a divergence between these active participants and those who elect to remain insulated from global markets. The inequality within nations (distribution of income) has increased during the period of globalization over the last fifty years.

Product specialization in international trade : a further investigation

In an influential paper, Schott [Schott. Peter K. (2004). “Across-product versus within-product specialization in international trade.” Quarterly Journal of Economics, 119 (2): 647–678] makes two empirical observations about U.S. imports. (1) The United States is increasingly sourcing the same product (however narrowly defined) from both developed and developing countries. That is, ‘across-product specialization’ has been decreasing. (2) The unit values of these multiple-sourced products are positively and significantly correlated with the capital and skill abundance of exporters and with the capital–labor ratios used by exporters. That is, endowments-driven ‘within-product specialization’ has been increasing. We show that both these observations extend to the imports of Brazil, India and Japan. However, our main finding is that observation (1) is largely driven by two factors. First, China is the dominant low-wage exporter of multiple-sourced products. Second, the most developed countries remain the primary exporters of multiple-sourced products. The U.S. case is the most extreme of our four importers: When China is deleted from the U.S. import data there is no trend in across-product specialization and rich exporters are increasing their trade share of multiple-sourced products. Since deleting China has no theoretical justification, these results must be viewed not as a contradiction of Schott's work but as a way of deepening our understanding of his empirical results.

International development : issues and challenges

This book introduces the key contemporary issues in the theory, practice and study of development, from economic growth, good governance and globalization to gender, security and the environment. It builds on the authors' extensive practical experience to offer a systematic assessment of the field and identify characteristics of successful development. Arguing that there can be no development without poverty reduction and the involvement of all key stakeholders, the authors show why it is important not only that the policies are right but that the right people are involved. Failure to do so leads on the one hand to aid fatigue, and on the other to distorted development, no development at all, or even negative development.