Pearson Education, Inc. © 2006 CHAPTER 8 Trade INTERNATIONAL RELATIONS Seventh Edition Joshua S. Goldstein

Pearson Education, Inc. © 2006 International Trade Mercantilism Liberalism Globalization

Pearson Education, Inc. © 2006 Global Markets Free trade Tariffs Comparative advantage Centrally planned economies Protectionism Balance of trade Interdependence

Pearson Education, Inc. © 2006 Balance of Trade

Pearson Education, Inc. © 2006 Trade Strategies Self-reliance or autarky Protectionism Non-tariff barriers Quotas Subsidies Regulations Dumping Economic nationalism Industries Interest groups

Pearson Education, Inc. © 2006 World Trade Organization (WTO) 1947, General Agreement on Tariffs and Trade (GATT) turns into WTO Maintains low tariffs Rounds of negotiations, such as the Uruguay Round and the Kennedy Round Most-favored nation status

Pearson Education, Inc. © 2006 Bilateral and Regional Agreements North American Free Trade Agreement (NAFTA) Free Trade of the Americas (FTAA) The Southern Cone Common Market (Mercosur) Andean Common Market Cartels: Organization of Petroleum Exporting Countries (OPEC)

Pearson Education, Inc. © 2006 OPEC Members and Oil Production, December 2004