In the post-Cold War world, trade is the new arena for competition-between nations, between groups, between ethical and theoretical ideas. In this revised and updated second edition of Dilemmas of International Trade political economist Bruce Moon puts contemporary trade events--NAFTA, United States-Japan controversies, the Uruguay Round of GATT, China's Most Favored Nation status, the founding of the World Trade Organization--into historical and theoretical perspective with the British Corn Laws, the Great Depression, the Bretton Woods system, and the origins of the European Union. Economic theory, terms, and concepts are clearly explained and contextualized with those from international relations.Throughout the book, three central dilemmas are examined: the unequal distribution of income and wealth created by international trade, the tradeoff among competing values that trade requires, and the difficult interrelationship between economic and foreign policy goals within and among trading nations. Though internationally framed, each dilemma has ramifications at a variety of levels all the way down to the individual's role in the global economy-as a consumer, as a citizen, and ultimately as a moral agent.
* List of Illustrations * Acknowledgments * List of Acronyms * 1. Trade and Trade Issues * The Themes of the Book * The Importance of Trade * Concerns about the Trade Balance * Policy Alternatives * Free Trade and the Search for Competitiveness * Export Promotion and Industrial Policy * Forms of Import Restrictions * International Cooperation to Stimulate Trade * The Dilemmas of International Trade * The Distributional Dilemma * The Values Dilemma * The State Goals Dilemma * Choices for the Individual * Conclusion: Choosing a Trade Policy * 2. The Theoretical and Historical Origins of Trade Issues * Liberalism and Mercantilism * Mercantilist Trade Policy * The Corn Laws * The Roots of Mercantilism * The Demise of Mercantilism and the Birth of Liberalism * The Rise of the Market * The Advent of Free Trade Theory * The Political Conflict over the Corn Laws * Conclusion: The Triumph of Free Trade * 3. The Politics of Protectionism * Cycles of Global Mercantilism and Liberalism * The Reaction to Laissez-Faire * The Rise of the Working Class and Political Democracy * Modern Elaborations of Liberal Trade Theory * The Distributional Dilemma: The Impact of Trade on Class * The Distributional Politics of Trade Policy * The Effects of Market Dominance and Decline * Trade and the Great Depression * Conclusion: The Sources of Policy Cycles * 4. The International Politics of Trade * The Origins of Bretton Woods * Hegemonic Stability Theory and American Global Leadership * Liberal Interdependence and Peace * The Ideals and Institutions of the Bretton Woods System * The Principles of GATT/WTO * The Financial Institutions of the Bretton Woods System * The Uruguay Round of GATT * The World Trade Organization * Conclusion: Trade Dilemmas, International Institutions and the "Battle of Seattle," * 5. Neomercantilism and Bilateral Trade Issues * U.S.-Japanese Trade Tensions * The Effects of International Trade on the State * Differences in Trade Policies * Japanese Trade Policy * Strategic Trade Theory and Policy * The Different Roots of American and Japanese Trade Policy * Contemporary American Trade Policy * Recent Trade Disputes * Conclusion: The Future of American-Japanese Relations * 6. Regional Integration * The Evolution of the European Union * Integration: Liberal on the Inside and Mercantilist on the Outside * The Mercantilist Roots of the EU * The Liberal Roots of the EU * The Political Roots of the EU * The Dilemmas Posed by Exchange-Rate Policy * The Evolution of the North American Free Trade Agreement * Motivations for NAFTA * The Dilemmas in NAFTA and the Political Response * The Dilemma of National Sovereignty * The Dilemma of Value Trade-Offs and Environmental Politics * The Distributional Dilemma and the Politics of Labor Issues * The Impact of NAFTA and the Mexican Collapse * Conclusion: Lessons from NAFTA * 7. Globalization and Outward-Oriented Development * Globalization * Trade Options for Poor Countries * Outward-Oriented Development * The Dilemmas of Outward-Oriented Development * The Coming Storm: Dilemmas Revealed * The Asian Meltdown * The Dangers of Deficits: Who's Next? * 8. Looking Ahead * Missions Reviewed * Mercantilism and Liberalism: A Summary Perspective * Future Challenges * Conclusion: Individual Choices * Discussion Questions * Notes * Suggested Readings * Glossary * About the Book and Author * Index