The impact on advanced economies of north-south trade in manufacturing and services

Many types of production are being transferred from the rich economies of the North to the poorer economies of the South. Such changes began in manufacturing but are now spreading to services. This paper provides estimates of their past and future impact on employment in the North. About 5 million manufacturing jobs have been lost over the past decade because of trade with low-wage economies. A similar number of service jobs may be lost to low-wage economies over the next decade. Although small compared to total employment, such losses may seriously harm certain localities or types of worker.

O dólar e os desequilíbrios globais

The global expansion of capitalism under American hegemony in the second half of the 20th century has changed the international division of labor and center-periphery scheme proposed under British hegemony. Under the new international division of labor, the United States is forced to generate an ever growing deficit in their trade account in order to accommodate the "mercantilist' expansion of Asian countries, produced by the trans-nationalization of big capital, under American aegis. This form of global economic articulation is at the root of the rupture of the Bretton Woods system and the growing financial liberalization imposed by the hegemonic power over other countries since the 80s.

A China como um duplo pólo na economia mundial e a recentralização da economia asiática

China as a double pole in the world economy and the recentralization of the Asian economy. The extraordinary growth of Chinese trade that occurred in the last years changed China’s role on world and regional economy. As a major producer of industrial consumer goods to OCDE countries, China has negatively affected many Asian competitors but as an expansive market China became the main source of growth to Asian countries. This new dimension was achieved after the Asian crisis of 1997 by an economic expansion led by public investment. After considering the Chinese balance of payment position and its industrial strategy this paper investigates this double dimension of China on trade and its influence on Asian countries.

Political economy of preferential trade agreement: the case of bilateral asymmetric negotiation

The purpose of this paper is to analyse the political economy of preferential trade agreements based on a sequential non-cooperative Stackelberg political game between a large economy and a small one, in which the political dispute of rival lobby groups defines the unilateral stance of both governments in the first stage; and the Stackelberg "coalition-proof" equilibrium defines the free trade agreement format in the second stage. Finally, a few modifications in the initial game structure are discussed in order to enhance the small economy's negotiation power. The political economy model is applied to FTAA case.

As duas vias do princípio das vantagens comparativas de David Ricardo e o padrão-ouro: um ensaio crítico

This article critically resumes Ricardo's principle of comparative advantages pointing out internal coherence problems that have been neglected by the specialized literature. First, long-lasting disequilibria observed in the balance of trade seem incompatible with the idea that these disequilibria are caused by technical advances that change relative prices. Second, comparative advantages do not seem to work in an economy with a universally accepted commodity-money. Finally, the contradiction between the gold standard mechanisms, ruled by Smith's "Law of Reflux", and the quantitative theory of money, which is a necessary condition for the "second way" of the theory of comparative advantages.

Trade with China and strategy in South American recent economic development

Trade between South America and China has been an important source of the high growth shown by those economies in the 2000s. During the globalization of the 1990s, trade between the region and China had not developed so much. A rather sharp growth in China's presence in world trade since the beginning of the 2000s changed the world trade trends for MERCOSUR countries, or, at least, for many of them. The impact of the increasing trade of agrifood has been very relevant, and different per country. Strategy is another important issue, referring to bilateral relations with China. This country should be seen as a partner in the global trade, and not as a new foreign investor for the region, but this may be different in the context of different national strategies of South American countries.

Trade rules and exchange rate misalignments: in search for a WTO solution

The debate on the link between trade rules and rules on exchange rates is raising the attention of experts on international trade law and economics. The main purpose of this paper is to analyze the impacts of exchange rate misalignments on tariffs as applied by the WTO - World Trade Organization. It is divided into five sections: the first one explains the methodology used to determine exchange rate misalignments and also presents its results for Brazil, U.S. and China; the second summarizes the methodology applied to calculate the impacts of exchange rate misalignments on the level of tariff protection through an exercise of "misalignment tariffication"; the third examines the effects of exchange rate variations on tariffs and their consequences for the multilateral trading system; the fourth one creates a methodology to estimate exchange rates against a currency of the World and a proposal to deal with persistent and significant misalignments related to trade rules. The conclusions are present in the last section.

Muistipotilaan tarkoituksenmukaisen hoitopaikan määrittäminen Balance of Care -menetelmällä

Tutkimuksen tarkoituksena oli kuvata Balance of Care (BoC) -menetelmän käyttöä ikääntyneen muistipotilaan tarkoituksenmukaisen hoitopaikan määrittelyssä. Tutkimuksen avulla pyrittiin selvittämään miten yhtenäinen on asiantuntijoiden muodostama käsitys ikääntyneen muistipotilaan tarkoituksenmukaisesta hoitopaikasta, sekä mitkä tekijät vaikuttavat asiantuntijoiden päätöksentekoon muodostettaessa tarkoituksenmukaisia hoitopaikkoja. Tutkimus on osa kansainvälistä EU:n rahoittamaa RightTimePlaceCare -projektia (RTPC), jonka tavoitteena on kehittää muistisairaiden ikääntyneiden hoitokäytänteitä tilanteisiin, joissa pohditaan tarkoituksenmukaisinta hoitopaikkaa. Tutkimuksessa tarkasteltiin asiantuntijoiden (N = 27) päätöksentekoa käytettäessä BoC -menetelmää. Tutkimus toteutettiin viidessä kunnassa, jossa kussakin kokoontui yksi asiantuntijaryhmä pohtimaan BoC -menetelmän avulla tarkoituksenmukaista hoitopaikkaa 14 esimerkkitapaukselle. Esimerkkitapaukset kuvasivat tyypillisiä ikääntyneitä muistipotilaita. Kukin asiantuntijaryhmä tutustui seitsemään esimerkkitapaukseen. Jokaista esimerkkitapausta arvioi kaksi tai kolme asiantuntijaryhmää. Asiantuntijat valitsivat ja kirjasivat ensin itsenäisesti hoitopaikan esimerkkitapaukselle, tämän jälkeen asiantuntijat keskustelivat ryhmässä ja pyrkivät muodostamaan konsensuksen tarkoituksenmukaisesta hoitopaikasta sekä mahdollisesti tarvittavista palveluista. Myös nämä kirjattiin. Aineisto analysoitiin kvantifioimalla ja induktiivisesti teemoittelemalla. Asiantuntijoiden itsenäisesti muodostamissa hoitopaikkapäätöksissä oli paljon eroja. Ainoastaan yhden esimerkkitapauksen (7 %) kohdalla asiantuntijoiden päätös oli yksimielinen. Osalle asiantuntijoista tuotti vaikeuksia valita vaihtoehdoista vain yksi hoitopaikka ikääntyneelle muistipotilaalle. Asiantuntijaryhmien päätökset olivat yhtenäisempiä, kuin yksittäisten asiantuntijoiden. Ryhmät päätyivät täysin yhteneviin hoitopaikkasuosituksiin seitsemän esimerkkitapauksen (50 %) kohdalla. Tulosten mukaan ikääntyneen muistipotilaan hoitopaikkaa koskevat päätökset olisi järkevää toteuttaa moniammatillisissa asiantuntijaryhmissä, näin saavutetaan yhdenmukaisempia hoitopäätöksiä. Sekä asiantuntijoiden että asiantuntijaryhmien päätöksistä suurin osa painottui kotihoitoon, joten suurinta osaa tässä tutkimuksessa mukana olleista ikääntyneistä muistipotilasta voidaan hoitaa palveluiden turvin kotona. Asiantuntijoiden päätöksentekoon vaikuttavat tekijät muodostuivat muistipotilaan hoidon tukipalveluista, fyysisestä hoitoympäristöstä, muistipotilaan läheisistä ja ikääntyneestä muistipotilaasta. Tutkimuksen avulla saatua tietoa voidaan hyödyntää päätöksenteon tukena määritettäessä tarkoituksenmukaista hoitopaikkaa ikääntyneelle muistipotilaalle sekä suunniteltaessa menetelmää muistipotilaan hoidon koordinointiin.

Neoliberalism and global capital mobility: a necessary reconsideration of textbook trade theory

Textbook theory ignores capital flows: trade determines exchange rates and specialisation. Approaches taking the effects of capital movements adequately into account are needed, and a new theory of economic policy including measures to protect the real economy from external volatility. Equilibrating textbook mechanisms cannot work unless trade-caused surpluses and deficits set exchange rates. To allow orthodox trade theory to work one must hinder capital flows from destroying its very basis, which the IMF and wrong regulatory decisions have done, penalising production and trade. A new, real economy based theory is proposed, a Neoclassical agenda of controlling capital flows and speculation.

Emerging markets and the international financial architecture: a blueprint for reform

If emerging markets are to achieve their objective of joining the ranks of industrialized, developed countries, they must use their economic and political influence to support radical change in the international financial system. This working paper recommends John Maynard Keynes's "clearing union" as a blueprint for reform of the international financial architecture that could address emerging market grievances more effectively than current approaches. Keynes's proposal for the postwar international system sought to remedy some of the same problems currently facing emerging market economies. It was based on the idea that financial stability was predicated on a balance between imports and exports over time, with any divergence from balance providing automatic financing of the debit countries by the creditor countries via a global clearinghouse or settlement system for trade and payments on current account. This eliminated national currency payments for imports and exports; countries received credits or debits in a notional unit of account fixed to national currency. Since the unit of account could not be traded, bought, or sold, it would not be an international reserve currency. The credits with the clearinghouse could only be used to offset debits by buying imports, and if not used for this purpose they would eventually be extinguished; hence the burden of adjustment would be shared equally - credit generated by surpluses would have to be used to buy imports from the countries with debit balances. Emerging market economies could improve upon current schemes for regionally governed financial institutions by using this proposal as a template for the creation of regional clearing unions using a notional unit of account.

Assessing the dynamics of terms of trade in a model of cumulative causation and structural change

ABSTRACT The motivation for this paper stems from the steady decline in the share of consumer expenditures on goods produced in the global south, coupled with the (empirically ambiguous) Singer/Prebisch hypothesis that this can be explained by a secular decline in the southern terms of trade. Drawing on these sources of inspiration, the paper sets out to study the dynamics of the terms of trade using a multi-sector growth model based on the principle of cumulative causation. The upshot is a North-South model of growth and trade in which the evolution of the terms of trade depends on differential rates of productivity growth in different sectors of the economy - and in which terms of trade dynamics may not be the best guide as to whether or not there is an uneven development problem.

ATTITUDES TOWARD RUSSIAN CUSTOMERS IN THE FINNISH RETAIL TRADE SECTOR – A salesperson’s point of view

The amount of Russian tourists in Finland has increased significantly in the past years. The impact of Russian tourism to the Finnish retail trade sector is enormous, since Russian tourists often spend a lot of money particularly on shopping. Shopping tourism is mainly focused in the near border cities, such as Imatra and Lappeenranta, and in addition in Helsinki metropolitan area. The purpose of this study is to map the attitudes and perceptions of the sales personnel who are working in the Finnish retail trade sector towards Russian customers and to discover which elements affect these attitudes. The theories in this study are based on cultural elements and elements related to sales behavior and performance. Cultural differences between Finland and Russia, cultural distance and cultural intelligence form the cultural aspect of this study. Customer orientation vs. sales orientation (SOCO), adaptive selling, selling skills and job competency, salesperson’s affect and empathy toward customers, and job autonomy form the elements concerning sales behavior and performance. Furthermore, the attitude – behavior link, based on social psychology is addressed. A survey was conducted in two retail trade chains operating in Finland. These retail companies have stores and department stores in different geographical areas in Finland and the survey was conducted in altogether 19 cities. In addition to the theories that were discussed, two expert interviews were conducted in order to get a deeper understanding of the phenomenon at hand. Moreover the interviews helped in the formulation of the hypotheses and the questionnaire design. The questionnaires were sent directly to the stores, where they were placed so that they were available for the sales personnel. Altogether 487 usable responses were collected. The returned questionnaires were analyzed with IBM SPSS 21 statistics program. The results of this study indicated that the attitudes toward Russian customers are more negative compared to other foreign customers. However, the respondents’ attitudes toward and perceptions of Russian customers varied a lot. From the background variables age, education level, length of employment in current workplace, and length of experience in customer service had an effect on the attitudes of the respondents. In addition, the perceptions of Russian customers were more positive in the Eastern Finland compared to Helsinki metropolitan area. The cultural elements; cultural knowledge, cultural distance and cultural intelligence all affected the attitudes of the respondents. From the elements related to sales behavior and performance customer orientation, salesperson’s affect and empathy toward customers, and perceived job autonomy had an effect on the attitudes