IB 201 Lecture Notes - Lecture 17: Trade Bloc, World Trade Organization, Trade Diversion
17 Nov 2016
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Document Summary
Ways to liberalize world trade: multilateral, preferential (regional, bilateral (reciprocal) Challenges to industrial nations: trade deficits and difficult to restructure its industries. Since labor cann not move as easily as goods and capital: rapid job loss. Health care: as long as jobs can codifies and standardize they can be easily done and outsourced overseas. Challenges to developing countries: higher tariff on agriculture products, higher developed countries farm subsidies, higher trade barriers on labor intensive manufacture goods and services. Construction: concerns that developed countries apply double standard on anit-dumping measures and intellectual property rights. Proliferation of regional trading blocs or super nations: pressures for nations to join regional trade bloc. Regional economic integration: process where by countries in a geographical region cooperate to either reduce or eliminate barriers to the free flow of producs people or capital. All barriers to trade among member removed. Each country can determine own trade policies toward nonmembers.
