Threat Effects and Trade


Book Description

We present a formal model of the effect of heightened product market competition induced by trade liberalization on the distribution of income between profits and wages. Integration increases the employment cost of wage demands, thereby decreasing bargained wages and the share of rents accruing to workers. This effect is amplified because of the existence of strategic complementarities which bring about a race to the bottom. Trade-liberalization induced wage discipline mitigates the impact of increased competition on firm rents, and may even raise profits.




The Protectionist Threat to Corporate America


Book Description

The unprecedented global economic growth of recent decades is closely tied to the trading relations that have developed in the postwar period. Nevaer and Deck explore the potential impact of protectionism on these relationships, arguing that trade barriers pose a danger not only to U.S. economic growth but to world trade as a whole. The authors offer a clear, systematic explanation of the underlying principles that govern international trade, the consequences of protectionism, and practical strategies for developing effective competition.




Threats of Quotas in International Trade


Book Description

Trade disruption and industrial organization are the subject of this penetrating look at the effects of the new protectionism in international trade. This volume provides five case studies of threats and protection in particular industries as a basis for discussion of the political economy of quota threats. Stockhausen analyzes the effects of quota threats on countries with competition in the export industry, on countries with monopoly in the export industry, and on those with duopoly or oligopoly in the export industry. Consideration is given both to large--and small--country cases under varying cost structures. The effects of relaxing some of the assumptions in the model, especially allowing for consumers and suppliers from third world countries, are also discussed.




Global Trends 2040


Book Description

"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.




The effects of a quota threat on the exporting country


Book Description

relevant range. The optimal response of the exporting country involves some combination of an export tax and export licensing.




Is 3D Printing a Threat to Global Trade?


Book Description

In the mid-2000s, the production of hearing aids shifted almost entirely to 3D printing. Using difference-in-differences and synthetic control methods, this paper examines the effects of this shift on trade flows. The analysis finds that trade increased roughly 60 percent following the introduction of 3D printing. Revealed comparative advantage was reinforced, with exports growing most rapidly for middle- and high-income countries. The analysis also finds that developing countries increased their imports of hearing aids as a result of the innovation, benefitting consumers. As a robustness check, the paper examines 35 products that are partially 3D printed and finds positive and significant effects on trade. The results counter widespread views that 3D printing will shorten supply chains and reduce trade.




Illicit Trade


Book Description

This report assesses the magnitude, flows and drivers of illicit trade and the illegal economy including: narcotics, human trafficking, wildlife, sports betting, counterfeit medicines, alcohol and tobacco. The negative socio-economic impacts that these markets have in consumer countries are as worrisome as the goverance gaps that are exploited in source countries. This report examines each illicit sector in terms of the geographic sources, destinations and key trade routes, the current trend of infiltration by organized crime networks, and good practices or future policy solutions with which to combat illicit trade within the various sectors.




Trade Threats, Trade Wars


Book Description

This study of American trade policy addresses two puzzles associated with the use of aggressive bargaining tactics to open foreign markets. First, as the country with greater power and resources, why has the United States achieved more success in extracting concessions from some of its trading partners than others? Second, why is it that trade disputes between democratic and authoritarian states do not more frequently spark retaliatory actions than those between democratic pairs? Ka Zeng finds answers to both of these questions in the domestic repercussions of the structure of trade between the United States and its trading partners, whether the United States has a competitive trade relationship with its trading partner, or whether trade is complementary. This book offers practical policy prescriptions that promise to be of interest to trade policymakers and students of international trade policy. Ka Zeng is Assistant Professor of Political Science at the University of Arkansas, Fayetteville.




U.S. Security Strategies


Book Description

Security was defined as "freedom from avoidable internal or external threats to a country's territory, citizens, institutions, and interests." Regional security, free trade, economic performance, and effective sovereignty are closely related. Instability, social violence, crime and criminal anarchy, and terrorism thrive as a result of poor economic performance. Not understanding and dealing with the linkages among these elements can endanger effective sovereignty, and lead a country into failing and failed state status. The cumulative negative effects of the current U.S. security and trade policy in the hemisphere come at a time when regional economies are in decline, and emphasize four highly related recommendations: Advance hemispheric understanding of the nontraditional internal security concerns of each country, and those that the region as a whole faces. Develop multilateral or bilateral civil-military structures and processes to identify and address threats, and find mutually acceptable solutions in the contemporary security environment. Foster expanded dialogue, consultations, and cooperation for building consensus principles and concepts for regional security and economic cooperation- and enhanced trade. Go beyond training and equipping small units to fight narco-terrorists, and adapt U.S. military efficacy to the contemporary threat environment at the strategic level. The United States shares with its Latin American neighbors an increasingly and vitally important financial, commercial, and security/stability stake in the political and economic growth of the hemisphere. Any kind of political economic- security deterioration in the region will profoundly affect the health of the regional economies, the U.S. economy-and the concomitant power to act in regional and global security arenas.