1. INTERNATIONAL TRADE

2. Comparative Advantage Countries trade w/ one another because we can’t (realistically) make all the things we need Bananas don’t grow well in the U.S. Costa Rica doesn’t have the experience to make the next Call of Duty Comparative Advantage: Countries focus on the goods/services that they can produce at the best overall cost American workers are too expensive to pay to make T-shirts… But we turn out good cars (domestic and Japanese)

3. GATT  WTO General Agreement on Tariffs & Trade (GATT) created out of UN talks on trade, attempted to encourage more open & free trade around the globe Created in 1947 Would go through a series of “rounds” of a few years to cut down on overall tariffs around the world “Rounds” are typically named after city or country in which they first meet GATT was replaced with the World Trade Organization (WTO) in 1995

4. GATT  WTO WTO attempts to resolve lingering and new trade agreement problems But much of the “Low-hanging fruit” has already been picked… The Doha Round, started in 2001, is way over schedule, not close to accomplishing the intended goals

5. GATT  WTO WTO catches a lot of heat for its work Often very unpopular for those industries in a country that are not considered to be a “comparative advantage” Tends to be more focused on economic/business development, rather than human/political rights and the environment

6. Trans-Atlantic Free Trade Agreement Pending, in negotiation between U.S. & EU since last year (on drawing board since NAFTA in early 1990s) U.S. is the single biggest economy in the world, unless you count the EU all together. Would easily be the largest free-trade area, esp. if Mexico & Canada agree to sign on.