POLS 2080 Chapter Notes -New International Economic Order, International Coffee Agreement, World Trade Organization
29 Dec 2013
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Document Summary
Neoliberals argue that, historically, economic growth in the north stemmed from 18th - and 19th-century devotion to free trade principles: principles like comparative advantage spark international competition nations specialize, all benefit. New trade theorists are also free market proponents, yet less optimistic of the overall benefits of comparative advantage (south eventually benefits over north) Fair trade perspective is not optimistic about win-win in international trade: historically, markets have always been regulated to benefit the rich in the north and nics in order to ensure a dominant position in the world market. Market regulation is needed to protect the weak in order to create equal international trading. Fair traders criticize free trade for ignoring political and market conditions (high technology vs. agricultural and low wage goods) underlying comparative advantage. Win lose outcome: fair traders argue that poor nations cannot develop industries without active government support to protect them from global market forces.
