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Bruce E Moon - Dilemmas Of International Trade: Second Edition

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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, Chinas 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 individuals role in the global economy-as a consumer, as a citizen, and ultimately as a moral agent.

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DILEMMAS OF
INTERNATIONAL TRADE
DILEMMAS IN WORLD POLITICS
Series Editor

George A. Lopez, University of Notre Dame

Dilemmas in World Politics offers teachers and students in international relations a series of quality books on critical issues, trends, and regions in international politics. Each text examines a real world dilemma and is structured to cover the historical, theoretical, practical, and projected dimensions of its subject.

EDITORIAL BOARD

Jeffry Frieden

Harvard University

Deborah J. Gerner

University of Kansas

Vicki Golich

California State UniversitySan Marcos

Lev Gonick

Wilfrid Laurier University

Barbara Welling Hall

Earlham College

Elizabeth C. Hanson

University of Connecticut

Barry Hughes

University of Denver

Janice Love

University of South Carolina

Vincent Mahler

Loyola of Chicago

Zeev Maoz

Tel Aviv University

Karen Mingst

University of Kentucky

Frederic Pearson

Wayne State University

V. Spike Peterson

University of Arizona

Neil Richardson

University of WisconsinMadison

Martin Rochester

University of MissouriSt. Louis

Georg Srensen

Aarhus University (Denmark)

Harvey Starr

University of South Carolina

Michael Stohl

Purdue University

Douglas Stuart

Dickinson College

Donald Sylvan

Ohio State University

Sarah Tisch

Winrock International

John Vasquez

Vanderbilt University

BOOKS IN THIS SERIES

Dilemmas of International Trade, Second Edition
Bruce E. Moon

Global Environmental Politics, Third Edition
Gareth Porter, Janet Brown, and Pamela S. Chasek

Humanitarian Challenges and Intervention, Second Edition
Thomas G. Weiss and Cindy Collins

The European Union: Dilemmas of Regional Integration
James A. Caporaso

The United Nations in the PostCold War Era, Second Edition
Karen A. Mingst and Margaret P. Karns

International Futures: Choices in the Face of Uncertainty, Third Edition
Barry B. Hughes

Global Gender Issues, Second Edition
Spike Peterson and Anne Sisson Runyon

International Human Rights, Second Edition
Jack Donnelly

Democracy and Democratization in a Changing World, Second Edition
Georg Srensen

Revolution and Transition in East-Central Europe, Second Edition
David S. Mason

Ethnic Conflict in World Politics
Ted Robert Gurr and Barbara Harff

One Land, Two Peoples, Second Edition
Deborah Gerner

Dilemmas of Development Assistance
Sarah J. Tisch and Michael B. Wallace

East Asian Dynamism, Second Edition
Steven Chan

DILEMMAS OF INTERNATIONAL TRADE

Dilemmas Of International Trade Second Edition - image 1

SECOND EDITION

Bruce E. Moon

LEHIGH UNIVERSITY

Dilemmas Of International Trade Second Edition - image 2

A Member of the Perseus Books Group

Dilemmas in World Politics

All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher.

Copyright 2000 by Westview Press, A Member of the Perseus Books Group

Published in 2000 in the United States of America by Westview Press, 5500 Central Avenue, Boulder, Colorado 80301-2877, and in the United Kingdom by Westview Press, 12 Hids Copse Road, Cumnor Hill, Oxford OX2 9JJ

Visit us on the World Wide Web at www.westviewpress.com

Library of Congress Cataloging-in-Publication Data

Moon, Bruce Edward, 1950

Dilemmas of international trade / Bruce E. Moon2nd ed.

p. cm. (Dilemmas in world politics)

Includes bibliographical references and index.

ISBN 0-8133-6768-9

1. International trade. I. Title. II. Series.

HF1379. M66 2000

382dc21

00-040832

The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.48-1984.

10 9 8 7 6 5 4

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Contents

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Tables

Figure

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It is impossible to acknowledge adequately all those who have contributed to this volume, and I shall not attempt to do so. However, special mention must be made of the contributions of my students at Lehigh University, who have read and commented upon several drafts of this work. Their indispensable efforts are gratefully acknowledged.

I owe more to my family, especially my wife, Beverly, than I can possibly express. She has provided support and patience far beyond what anyone has a right to ask.

Bruce E. Moon

Picture 6

APECAsia Pacific Economic Cooperation
CAPCommon Agricultural Policy
CGEcomputable general equilibrium
CUSTACanadaUnited States Trade Agreement
DMDeutsche mark
DSBDispute Settlement Body
ECEuropean Community
ECBEuropean Central Bank
ECSCEuropean Coal and Steel Community
ECUEuropean currency unit
EECEuropean Economic Community
EMSEuropean Monetary System
ERMExchange Rate Mechanism
ESCEconomic and Social Committee
EUEuropean Union
EURATOMEuropean Atomic Energy Community
FDIforeign direct investment
FTAAFree Trade Area of the Americas
FTCFederal Trade Commission
GATSGeneral Agreement on Trade in Services
GATTGeneral Agreement on Tariffs and Trade
GDPgross domestic product
GNPgross national product
H-OHeckscher-Ohlin (theory)
IBRDInternational Bank for Reconstruction and Development
(World Bank)
IMFInternational Monetary Fund
ISIimport-substituting industrialization
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