International Trade Darren Bernardo Course Text: International Political Economy, 4th Edition, Pearson Publishing

International Trade has a ripple effect(파급효과) International Trade is exchange of capital, goods, and services across international borders (국제무역은 자본,상품,서비스들을 국제 국경선에서 교환하는 것이다) Global Trade is MOSTLY good HOWEVER it increases competition and creates winners and losers. Winners will try to increase trade and lower barriers. Losers will try to reduce trade and create barriers for protection (승자는 거래를 늘리거나 관문들을 내리기 위해 노력한다. 패자는 거래를 줄이거나 보호를 위한 장벽을 만들려고 노력한다. International Trade has a ripple effect(파급효과)

US Tariffs on Foreign Imported Steel Example 1997-2002 American Steel manufacturers (미국철생산자들)were under great competition from foreign steel manufacturers (외국철생산자들) 34 American steel mills file for bankruptcy(파산을 신청하다) 18,000 steel workers lose their jobs Owners of the American Steel Firms and the United Steel Workers of America (USWA) lobby ([의안]의 통과운동을 하다)for higher tariffs on imported steel 2002 -President Bush concedes (~을 인정하다)and raises imported steel tariffs from 8%~30%

2003 - High Steel Prices Hurt US Auto Manufacturers (높은 강철가격은 미국의 자동차 제조업자들에게 손실을 입혔다) The Consuming Industries Trade Action Coalition (CITAC)(미국소비산업무역행동연합)lobby for lower tariffs on imported steel 2003 – Bush lowers tariffs on imported steel

Grading: Course Language 2 exams and a final group presentation + attendance and participation Course Language Lecture: English Text: English PPT: English/Korean Presentation: English/Korean

Global Economic Systems? 4 areas: The International Trading System(국제상업체계) The International Monetary System (국제화폐체계) Multinational Corporations (MNCs) (다국적기업) Economic Development (경제발전)

International Trading System Governed(통치하다) by the World Trading Organization (WTO) 147 member countries Creates a non-discriminatory (비차별적인)international trading system The International Monetary System -Exists to enable people living in different countries to engage in economic transactions (경제적거래에 종하하다)with each other MNC - Controls production facilities(생산수단)in at least 2 countries 76,000 MNC in the world today Major players…Account for ¼ of total global economic production(전세계적경제생산)

Economic Development Different countries use different strategies(다른전략들) for development: Traditional Schools of International Political Economy Mercantilism (Nationalism) Liberalism Marxism

Traditional Schools of International Political Economy Nationalism (Started in the 17th century) Economic strength(경제적 힘) = National Power(국가의 힘) Encourage exports(수출장려), discourage imports(수입 억제) Certain economic activities are more valuable than others.(확실한 경제적 활동들은 다른어떤것 보다도 더 가치있다) (The state should play a large role in allocating resources(자원할당에 큰 역할을 한다) Liberalism (Started in the 18th century in Britain) Politics and economics should be separate. The state can ONLY be the regulator (단속자)and enforcer(시행자) of rules but cannot interfere(방해할 수 없다) with any transaction(거래) Trade surplus(무역 흑자) is a poor indicator(안좋은평가) of a counties wealth(국가적 재산) Countries are not necessarily made wealthier by having a trade surplus. Instead they are made wealthier by producing goods at a low cost (저가로 생산되는 상품)and trading them for goods that would otherwise be a high cost to produce(고가로 생산되는상품)

Marxism (Created by the German philosopher Karl Heinrich Marx, 1818 – 1883) This economic theory was created because of the growth of capitalism (Private ownership of production and power over wage determination) The value of goods should be determined by the cost of labor to produce them(상품의 가치는 그들이 생산하는 노동의 가치로써 결정되어야 한다) Capitalist governments (자본주의 정부들은)are greedy and tend to hurt development(개발을 방해하는 영향이 있다) by hording profit(집단이익). Money tends to concentrate around politicians and those with power (화폐는 정치인들과 권력에 집중하도록 영향을 준다) Eventually capitalism will be overthrown (폐지하다)by a people’s revolution(민중의 혁명) and replaced with socialism(사회주의로 교체되다) Capitalism increases the gap between the rich and the poor(자본주의는 부자와 가난한 사람들의 차이를 증가시킨다)

Economic Development Summary Nationalism asks: What is the best way to increase a nations power? Liberalism asks: What is the best way to improve the standard of living for the people? Marxism asks: Is the countries wealth being distributed equally?

For Next Class: Read p21 – 44 (The World Trade Organization)