Free trade, wto & globalization (5/19/17: from gatt to the wto. Important because it was not an international organization just a treaty that says people meet and talk about lowering tariffs once a year: the governed international trade until 1995. It got what it wanted like most hegemons b. l: importance of liberal ideas. It wanted a liberal economic system got what it wanted: the state determines how much of a particular good is produced. Ideas matter: it was because americans believed in democracy which is why we ended up in a free trade system c. m: capitalism lib free trade ideas. It is not just american hegemony it isn"t liberal ideas, it is capitalism. No it is profitable: economics explains politics, capitalism explains why the us promoted a certain type of economic system. What is globalization: mutually dependent movement around the world of goods, people, capital and ideas.