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Through the process of globalization, the trade dependence and int- dependence of the developing countries have increased phenomenally than ever before. The characteristic of this late twentieth-century globalization process has been the new technological revolution that has led to a high rate of world exports of electronics and other high-technology products. This has marginalized most of the developing countries exporting largely the low quality and low value-addition manufacturing and primary products, barring a few exceptions like China, India and Mexico. The fruits of globalization have, therefore, been unevenly distributed so far across the developed and the developing countries. Moreover, whatever little growth in exports of medium technology products has been achieved by a few of them, is largely driven by outsourcing of low value-addition and low- stage of activities by the foreign multinationals. Outsourcing of software services, rather than development of software packages, in India and assembly line for automobiles in Mexico are the two glaring examples. These activities may have boosted the total exports of these countries, but they have failed to generate any feedback effect on the rest of the economy in terms of skill formation, increase in overall productivity level and product diversification.
Through the process of globalization, the trade dependence and int- dependence of the developing countries have increased phenomenally than ever before. The characteristic of this late twentieth-century globalization process has been the new technological revolution that has led to a high rate of world exports of electronics and other high-technology products. This has marginalized most of the developing countries exporting largely the low quality and low value-addition manufacturing and primary products, barring a few exceptions like China, India and Mexico. The fruits of globalization have, therefore, been unevenly distributed so far across the developed and the developing countries. Moreover, whatever little growth in exports of medium technology products has been achieved by a few of them, is largely driven by outsourcing of low value-addition and low- stage of activities by the foreign multinationals. Outsourcing of software services, rather than development of software packages, in India and assembly line for automobiles in Mexico are the two glaring examples. These activities may have boosted the total exports of these countries, but they have failed to generate any feedback effect on the rest of the economy in terms of skill formation, increase in overall productivity level and product diversification.
CE Marking, the European system of mandatory product safety standards, has created major obstacles for US exporters to the European Union (EU). CE Marking, Product Standards and World Trade is one of the first books to analyze the nature and dynamics of this major non-tariff trade barrier. David Hanson looks at the patterns of EU decision-making through a functional comparative analysis with the US, and in the context of the institutional alliances and rivalries that shape outcomes. An increasingly important but little understood issue, CE Marking is also an example of a growing problem in international commerce - the impact of inconsistent domestic product requirements on international trade. The author examines the way in which the EU has implemented the CE Marking system, its impact on US exporters, the dynamic of US - EU trade and negotiations, and the political and administrative arrangements that support them. This comprehensive study will be of great interest to students and scholars of industrial economics and international business. Business people and policymakers will also find much of interest in this timely volume.
Complementing trade theories with relevant trade empirics, this book covers three aspects of the study of International Economics: pure theory of trade, trade policy, and theory of Balance of Payments (BoP) and exchange rate. In the first part, it discusses the basic principles of international trade between dissimilar countries as well as between similar countries, and implications thereof in terms of welfare, income distribution, and growth. The approach taken here is distinctly different from that in most of the existing textbooks on international economics. Instead of model-specific discussions of the basic issues, it discusses the basic principles governing trade, gains from trade, and characteristics of international equilibrium in the context of a general trading environment of open economies. Subsequently, specific models of trade are introduced as alternative theoretical explanations for the basic principles of trade. In the second part, a wide range of policy issues are analysed including unilateral trade restrictions and promotions; reciprocatory trade policy choices through regionalism; product standards that regulate trade between developed and developing countries; and implications of capital inflow, FDI, fragmentation, and global value chains. In the third part, the book discusses different currency and exchange rate regimes and their implications for a country's balance of payments and foreign exchange reserves. Drawing upon the basic theories, it studies expenditure-reducing and expenditure-switching policies to correct for BoP imbalances under a pegged exchange rate regime. Finally, some reflections on the choice of exchange rate regime and optimum currency area wind up discussions of monetary issues in international economics.
First Published in 2003. Routledge is an imprint of Taylor & Francis, an informa company.
The world's trade regime is promoted by international agencies and most governments as the best way to lift the poor out of poverty and achieve sustainable development. But does it contribute to human development or not? This reassessment looks in detail at the way it has worked under the GATT and under the World Trade Organization, and analyses how it is working and how it can be improved. The book aims to make major contribution to the debates surrounding globalization and the impact of trade on the poor, on social stability and on the environment. It is intended to provide a benchmark for future policy discussion and analysis.