Global Trade Policy
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"International economics teaching at the undergraduate and master's level generally sequences trade theory, trade policy, exchange rate determination and balance of payments, and international monetary adjustment under alternative exchange rate regimes - more or less in that order - with applications to countries, regional arrangements, and institutions brought into the discussion throughout. This clearly written volume focuses on the first two dimensions of international economics in the real-sector context. In chapter 1, Smith (Univ. of Minnesota) covers traditional Ricardian and factor-endowment-based trade models; she develops partial and general trade equilibria in chapter 2 and intra-industry and intra-firm trade in chapter 3. This discussion is thoroughly up-to-date and highlights the gap in conceptual elegance between inter-industry and intra-industry trade models. In part 2, Smith applies partial and general equilibrium constructs to trade policy, starting with tariffs and proceeding to subsidies and quotas and other quantitative restrictions, then compares the welfare consequences of alternative trade interventions. The book's real value comes in part 4 on the trade consequences of all kinds of domestic policies whose consequences (and often intent) include distorting trade. This covers a "dog's breakfast" of measures often hard to sort out (e.g., policies on labor standards, the environment, human rights). Summing Up: Highly recommended. Upper-division undergraduate and graduate students."
- I. Walter, New York University.
(Choice, May 2014)
In Global Trade Policy, economist Pamela J. Smith explores the key questions raised about global trade and policy today --and the answers that emerge from economic research. During the past two decades, the character of global trade and policy has changed in unprecedented ways. Attention has turned from traditional trade policies --such as tariffs, quantitative restrictions, and export subsidies --to trade related policies including intellectual property rights, labor policies, environmental policies, and growth and development policies. The institutional arrangements for these policies continue to evolve with substantial international debate. Offering accessible coverage for students of economics, business, public policy, and applied economics, this book provides an economic framework for understanding the current policy debates in global trade. Readers are first given background knowledge of trade theory to help guide discussions of trade policy, including traditional theories of inter industry trade, as well as newer theories of intra industry and intra firm trade. They then examine the national and global effects of widely used policies designed to directly affect trade, the indirect impacts of newer trade related policies, and the institutional arrangements for these policies. The distinctive question based format provides an accessible structure for students to grasp the key issues in this field, and the inclusion of reading lists and applied exercises enable them to explore open ended and realistic questions of policy debate.
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