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    21 views78 pages

    Capitulos10 11

    Uploaded by

    Esteban Orozco

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    © All Rights Reserved
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    of 78
    Global Political Economy: Protecting Wealth in the Global North “he Broken Bargain” that Jack Snyder discusses in a 2019 Foreign Afr aticle raises critical questions about the future ofthe post-World War Il beral order designed to balance the needs of internationalism and national mtonemy, he popu lst, ant-globalist uprisings that have occured in the United States, lly, the United Kingdom, Hungary, and elsewhere Ihave shaken the global consensus centering on free markets and liberal economic polices guided by international insti tions It is unclear, however, whether these nationalistic eo nomic impulses will persist and define global policy for years tocome or merely reshape globalization inthe world economy. ‘The economic rss that engulfed the globe in 2008 became the longest recession since the Great Depression ofthe 1930s. In the United States, the recession and its impact on unem- ployment, federal spending ands host of other econo icatorsbecamea signature set of events for many people. he recession forced college students as emerging contributors to the global economy, to confront the realities of a shrinking job market, declining federal nancial ld sing educational ‘coats, nd likely lower earning potential afer graduation ‘esp trgo colabotan seesing the pang nara se Tumpanibaniesondes ineinomnar? compro GLOBAL POLITAL ECONOMY: PROTECTING HEALHINTHESLORA oar Moree the loalecesan demonstrated the evel of blinks daaeen every pean and every country experiences ly. The BOP ar ging fos the ret econo 206 Tatas thi oie Ns ey ighlghted the dere towhich te Eoopean Uion ©) snd ree crepenent toni among erties et 0 Wh Nt a en Canada, nd beyond Present Brack Obama put eos ae etonerdependencethisweay:“Tebiggst eso the Arperean 5 arate. lsuncertaity about Europe, because 6) slobal aan eEurope a weak, Europe isnot growing that ging oA lon ar businesses nd our ality to crests ere ne United aa aden Obamarecogntion ofiatrdependenc sande n ss4 ae Amrica Fest ecnomi polices that ave since emerged 9 aa ep arnitation ros ais m steel and shi poset °° sae pn aed Burge to the aisnstrains on-again of-apin conn teaver trade Trap aproch ety gets te alt 8 Mrnaleroneic order and challenges the core ofthe bal econami 57 that hasbeen in place fr over 70 years per iar oct nthe caminat bl anomie sFAE rarely devdape ounce ro often refered 8 ran Non rao worth ming that te dnlnan fur on eonORE RS arene nd eral econo fen ignores oF 2a down the sgt of the es developed costs andthe way in whieh Global South te dependent onthe Global North fr its prosperity ‘The countries ofthe Global asc eey welt adcan essential ie o thi svg a et aoe ines ettugh Howee, the cunts the Gas South eRT TRatyave poor and have tein the way of savings and ober casi convertible cay cece on which iein tight time Arare the lb SNS sar ene ne tlt when teal eon din a > a alafter 208, The Gal South the primary ocusin CHAP ae maint ina peri of unpreceentedtonomicturmol A SZ=5 aan doo! knoe what the ext ya wil ring oF whether Put rege contre wil ge Ameren Fs back oward America 18 a eae” The many economic eats ween this AP he ne cma cxamples other tha hard; unchangeable EWS TS wenabegi by lacusing theoretical perspectives co bal poi ean “abich are more constant in their constructs ‘THEORIES OF GLOBAL POLITICAL ECONOMY 295 cdepene B nae eee loch ae Discus the thee theories relevant to understanding glaba political economy: economic navonlism, ‘ntematonlsm and world ystems. a Explain the concepts of lobalaation andinerdependenc. ae ent the dominant lob economicnsttutons, econ Describe efforts to promote regional and biter ecnomi cooperation. | lobal zie “re ohare United : ' eras © Theories of Global Political Economy ed fom Many scholar and analysts believe that economic forces and conditions ae csedon the key determinants of the couse of global politics (ee Chapters 1 and 2) mation The various theories these scholars have advanced to explain the interaction el between politics and economics roughly divide nto thre appreaches economic a ‘atonal internationals and orl apstem approaches Each of these he system ‘spproaches purports to describe how and why conditions occur ad offers pe scriptions for pole. em that Although the thre approaches correspond tothe theoretical perspectives ae discussed at length in Chapter 2, the fi not as precise as you might think Yes, the wold systems approach is indeed word systems theory. But a omicine ‘ile pectic theoreti correlations things get made, both heartily ays, the ndpoticaly. Economic nationalists equate oughly with relist perspective, South 2 they emphasize the ned to protec state power nd wealth, But there a1@ lant flentohe e Global economic nationalists in both the Republican and Democratic parties in the oan ee United States, including arguably both Donald Trump and BerieSandersas_ Seohonancenieee fe discussed nthe Thinking Theoret feat. Nos bunota thre athgen Internationalism equates largely with liberalism, and itincudes a large counts ocateanthe verible sath ofthe center of American pits aswell as probably tort other cone orange south les inthe Global North This approach is ls the dominant economies = q school undelying the Betton Woods system and the overall posperty that nemo aide has enue since the end of Word War la Table 101 summaries, These ‘HeNRton babe 1. thre approaches are the theoretical drivers fr analysis in this chapter and Samana eso arent, ln Chapter 11, ar oth focuscon global politcal economy but through afferent fue uehbac lenses: dominance and dependence. ia First Economic Nationalism Semi ave and the os Ths, ynonmous whens, fhettropen pow ‘The core of ecomomic nationalism is the realpolitik belief thatthe sate should we its economic strength to further national interests. By extension, zoom, ‘conomic nationalist also advocate using state power to build that nations. ne omtenan etna economic strength. To accomplish ther ends, economic nationalists rly ona webu tycongocin ‘numberof poltical-economic strategies that often result nthe exploitation of ond btn Satan ‘weaker countries. Colonialism, orimperlaligm,eeeke national economic gain cowie, ses empetno enon OUTIL ECONOME mroTECTING EATAIN TRESS ont ‘able 101 Analysts Take Very Different Approaches i9 Describing How the International Analysts Toss omy Works and inPrescribing How it should Work sede cent cconamreltns osx tate recone pesado ot ales Veet siration fees of ceopention ews endenlopent oh ‘Sa Soho Ca aaerrarome ubexsnaectan ee Wein as Sate Le rae Neoaasin ecm over ecfore ben enclnol site ares TMadungainatorsicor- Economic ese domestic a mcgernmertl 2453) congener —‘atenadcapaton at an competion mrt, opener I tenlnecamge | BeoungH Sige prone em peeniepanaste power Inaesegeiaprapety mae ceratend et Sereno savor es rr icpatcas —caninaimaecl RAG ST ‘ole ramiponen_paesnezonench Feats wea 2 eporerabaldnaors over betean dass ot seme iseconorie ‘etausedonopramae Pals hs ee ncand by descinof dns tem ‘reratoral Fe economic in mistestmsat——_Negstvraiy af Seejecnciony ener epontcrarasons— oiemroghrdems, ommsie yt Imgenticineame anna euidsacenndrmintn m Beagesnddomrance Sen nes seer emyohen canbextienstinagn, Spann ae Norsponii ot, Semmens, eee Seats ame a hear conexant sean taste Cowes t rondo he GetaSmumiemateupetare by recy contaling another an, peopl ait sous De ToS oy Europeans outward congue and ld bt ent Sl ree rsthas gly ed ou butranycbrervers chara i noe las clea ah) coins ten wtb perl bl Nor aanngandextactingresouce fromthe Global South lating and ans sn aot rterng ei country Py PS ree nse sch fore aidan freee ES by go acne sch ap sucins earl rane om Pas mls econo pander coor 0 ANNs tet Ne Pr tor fe economic policies, They ae modified capitalists, though aaa eran sometimes favor using international goveremental organ ee 2 9 and national government programs fortwo ends: (1) to ensure casos cscs adopt eapitalism and fee rade; and Qt eaze the worst ing aaa cache ayrtem so that future competition canbe faite and current een the Global South canthave chance to achieve prosperity. Politica) ne John Rugg 1983) refered to this as “embedded liberalism’ ons caer ee eemarkts while subjecting hem tolnstituionalied polities] Tegulation at the national andisteratioal levels. World Systems Advocates of a world systems approach believe that economic structure i ¢ Aare ctor daping pola! elatonships andthe power they engend rr poms adherents contend that the worlds divided between have 290 Meer eyenties, where the baves he Global North) worktokep the have ats Global Sout) weak and poor in ofde to exploit them. To chan aan ened ayateme analyate generally favot a restructuring ofthe economy seed the uneven datrbution of wealth and power, As discus eatin Chapter2 the wold systems approach has ts ootin Maras political economy. another ould be onomy is ithe lb rativead smoditis ists favor ndexport bares, tort the One eatly of Nations sition that clita ys with ther th sich we sitalise ap con — ts, though, al orga ) twensure rors ius rnd current ty Political lis?—one ced political sy engender. sa haveand epthe have 1 To change he economic discussed at tain Marist “THEORIES OF GLOBAL POLITICAL ECONOMY Dependency theory, strand of world systems theory, holds that under- evelopment and poverty in the Global South ae the result of exploitation by ‘the Global North. However, dependency theorists focus on nationalist effort and unlike per Marssts, they do not believe that the workers ofthe world ‘illunitei red of their espective bourgeoisie masters. Dependency theorists contend thatthe Global North's exploitation of the Global South is driven by the North's need for cheap pelmary goods (eg, oll, large external markets for the North's expensive manufactured goods (c., automobiles) profitable svestment opportunites, and lor wage labor. Bessie this esonamic system enriches the North and impovershes the South, dependency theories argue ‘hat the North follows policies designed tokep the South dependent. For this reason, world systems theorists term the system neoaanilism because top crates without colonies bt is stil imperaistic. ‘The Global North maintains the dependency ofthe Global South in ‘number of ways. Some are subtle, such a5 giving rich countries much greater ‘voting power in the International Monetary Fund (IMB) thereby allowing the North tomanipulatethe world economy oits advantage. Other techniques are less subtle. These include corrupting and coopting the local elites in the South by allowing them personal wealth in return for governing thie countries to the benefit ofthe North or ithe loeal elites are defiant, wsng military force to overthrow them and replace them with friendlier regime. [Atasystemic level, world aystems theory contends thatthe evolution of the Western-dominated capitalist system over thelast several centurieshas ds torted development, leaving vast economic, socal, and political disparities be tween the ove the Glabal North) ofthe international system and the periphery (the Global South). As for countries that ae 4p When | have achieved a high level of North- fj The ern style development and prosperity, 4gtat wet Wah | like South Kores and even increasingly —Ortoe China world system theorists aeaptto | FT argue that these semi-periperal states have achieved sucess only by dilly serving the interests ofthe North ANote on Statistics Before further discussing the Global North, i i important to familiarize yourself briefly withthe distinctions Between some economic terms that you will encounter frequently. Gross ‘national product (GNP) isthe value of lldomestic and international economic activity bya country's citizens and bus ness, Gross domestic product (GD?) is the value ofall economic activity within tnt nda Seasionageaty it Prout adron moter smnafactare good Hrs precesing erase to products hana ne seo chpter19 GLOBAL POLITICAL ECONOMY: PROTECTING WEALTH INTHE GLOBAL NORTH worasptemsteory The “Dreting fan cone four trougnaboxt9 ‘perprendf apts and rceveda euntieron eons rete ony Contesandreios rossntionlprodiet Groton secesgroded Specs Counyoroid otrdomesteandon purchasing power part) pes erate och poner of ent ences oe ye by tveccangeratect st reals Oars athe ‘een odhesforifton country by ton and foreign nividuals and companies. Some arn a county oy Ms trpor GNP and GDP; ober adjust these to Tess et sag ower parity (PP, ann CNPP oF COMER, 29 5 parcharing power rvs coy ales: Ti procest aunts the GNP 268 ee orarve ale aginst US dalla bed on diferenseions!> Theat food, housing and oer local purchase. costo ond unto understand the difernce ewe CUrrent Sls end ee Curent elas Goclading fated vale) repre Te! ad eal Sle ote crrencyin the ea being ported Rea 204658 see tals, jn for non expres ai fn Te © We (oe fornia, For exam, our caret dallarsaO Fe TT and you gt ae $60 0000 2019 be nr $50000 Yo hen using 201 asthe bae peas, Your red dll amis fat jn 8500, wth the oer hal of our 510000 ate Pin offset by ination cry naa ote is about sources and statics. The dts wed DS foe Ngan my vay some rom veer rues ei ee ocala date varier aon epoing TESTA TS eth i IM, World Trade Organization (WTO), Unite! Nave a erment Alo, the data are imperfect Beonomi a9 and US pre pecllyimpertec, given te ited esorces those count come hw oe static an the argon of os 7 Fearne ig an-nfrma” of noneorded portion ofthe aanony 98 shat may i rate on reds sch ae he raph growth of tenet A ee ree ference, such asthe percapitaineome BaP Bewen Me vival and poor countries The World Economy: Globalization and Interdependence peri allow us to take a se. events and derstand hos evn rete: nt pattern of lations. Often, there low We develop together i hte cn the orl plies ose 2 aoe ee es enw no cose somes data aos 00 sr Eccoamy that we can combine hese ore ith ‘infor Fel amie tae, vesten, ad monetary airs 10 wdc spa te paterns of relationships in each policy ae Trade ‘ra nernavonal ow of gods andsevicesta valcocerntoallved a, fates on pronperity, Merchandine trade ost eequtly 0c Ia a at exports Tee tangle gods ae maiden 0 wibporee: primary goodsand manufactured goods Services trade's esl! Fae important. Services ince things that youd or OO, a vance companies earn pews fr asurng foreign ae ures for ethe Bg GNP and 5 alles vahes in dollars of base age ere nmi cningsin ise being, ssed here cause the ons, such iNations, or poorer counties ry. Tas, rational ccen the vents fit to develop slitesand he global od info- +10 under vrld states associated visless well or others snassets oF ‘THE WORLD ECONOMY: GLOBALIZATION AND INTERDEPENDENCE 300 people, when American movies earn royalties abroad, or when US trucks ‘carry goods in Mexico or Canada, the ‘even they generate constitutes the export of services, Note that exported services do not hve tobe performed overseas. American colleges and wn: versties, for example, are one of the ‘country's lamgest exporter of services During 2038, about 1.2 million for- ign students studying in US colleges spent billions of dollars for tuition, oom, board, and the ather aspects of College life ranging from textbooks to pizzas Notably, the US shate of glob ally mobile students has declined in as more countries send thei students abroad, but American student con ‘ine to study leche in increasing absolute numbers* ‘Whether merchandise o services, trade is booming, For the US economy, tuade amounted to just over $2 billion in 1900 but had grown to alinost $45, trillion in 20175 Trade expanded simiary for other industrialized countries. Even considering inflation, these figures representa tremendous jump in world ‘commerce. Trae growth has been especially apd during the post-World War era of significant tariff reductions. Duving the 1913-1948 period of world wars, depression, andtrade protections tre increase at an average anal rate of only 0.8%. The postwar period has seen trade increase a at average annual ate of ver 5%. ‘The rapid growth of trade has been caused by a number of supply and ‘demand factors and the implementation of fee trade philosophy. Improved production technology is one factor that has increased the supply of goods ‘The Industrial Revolution, beginning in 28th-century Burope led to mass ‘manufacturing As production rates spd up, manufacturers increasingly had to seek markets for ther burgeoning supply of goods father away and even cross national borders. In tur, these changes created an increased demand forresoures to supply the factories. Hadein raw materialsimported by the in dustralized Furopean countries peaked during the 19th century and through ‘Word War If as demand outstripped domestic resource availabilty. nthe past 7S years, this damand has decreased for several reasons, such asthe use of synthetic materials the manufacturing process. Today, primary products ac ‘count for only about one-Sfth of all goodsin international trade ‘Materialism hs als helped to account for increased trade, The rise inthe ‘world’s standard of living, especially nthe industrialized countries, has com tuibutedo demand pressure international trades people have sovght mote ‘thepasttwodecadesin lative terms gous ssunste ostsent oleae as one otnecoesa serves Tadd onthepueneimgartor ‘hesislesport tomate: ois boss patents Shopag scones sreriang sex Comrie 0A. PoC ECOMDWT: PROTECTING WEALTHINTHE GORA ONT materi ood ndimproved series. Improved traneportaton hasten ers cary the rowing soply of materiale and manfacted goss out pe demand forthe. Modern developments transportation ogy have aloo greatly decreased per-unttraneporcaion st reece a fre trade philosophy has promated trade a5 we) eer He with ansternatonalet approach olbal pl) wt eat advocacy free trade Adam Sith and others 200 Oe og after the global trauma ofthe eat Depression ofthe 19308 and World vo a Brae, One cate for these miners cris blieved ws 6 Meee ata enced rade and cvded nations Aer Sa ear er Ome word commerce began in 947 tocooperate ro Tee ac oer tough the General Agreement on Taifisand Tate ternational Tis anda sever orate eflortshave ray Gecreased world tariff arses eased won peony eae ei, bt heir sarp cesses eve BEN ved the cot of imported gods and have strongly stimulated sade Ts el he eyopreanveatceting down oftarifs since 1947 PAPA) Sea he aggressively nationalist pis ofthe Trump admis 0 sy aso negatively by many word leader. Infact, tthe cones tare Gooupo ight suman June 2018, Canadian Foslgn MGT sino wld eprters thatthe national cy ewes SPST oy rt auting to Canadiana the clove and strongest sl the United Stateshashad. Thatiswhere the insults international Investment spade her not been the ony form of rowing international epnomlc #0) Trae pel nvesment sal created increased finan interdepenne ines For enape Ameren had ut ove 36 erilion ae end in 2017 making not only dividual nvestrs Bua he ive re US economy dependent to some gre on the sao Se ea ray, Convesely, foreigners had just about $44 triton 25089 ort ted tates andthe ebb and Saw of those funds intothe coun ers an cena factorain Americans prospenty—or lao arealen ce inatonel corporations (MNCS), se called trensnation! corn cna othe ons sae of ok fosgn nesimens MN caren operate in more than one country. These operations ae sees ines, ad othe natural resoure-extac on Poses sar pce mutacin plat or fers that uly banking ae ons MINA date bckst least tothe Dutch East India Company a ee ntl afer Word Wa Ithat they gant expand PY 21602 rans, Now over 60,000 MICs ext, and ey pak 9 in ont te muscle hee annual venues gross corporate roduc) PS Tide one good menace (igure 10: one ea se wealth of the largest MNCs gives them consderle Fae et iepact on many aspect of diy Tife Here, 2018), and n° aan pte to he national iteest ofthe paren company For nan nerested vd goods + as wel, plitcal cd Worl as the educein nd Trade matically vegreatly ace This rericnary conch Minister is absurd se United activity, pendence fin direct alan the ate of the rectly in thecoun- snational nt MNCs processes, king and cary in ndrapidly ack enoe due) pro cable i din ways e THE WORLO ECONOMY; GLOBALIZATION AND INTERDEPENDENCE 303 Facebook as data-sharing agreements with several Chi ‘evecompanies. One those gage companies is Huawei, "a (Sussiton) telecommenieations equip ‘ment company thathas been fogged Aen al pen tli sea nao! Ean tres Asweioor foie ae Clon teprdingFotbook tate cna em cae norman haps = the “nev gold” in the world an economy as fens crete PPP PLIES SPM Soacaes Oy ee of S the eer ofthe ares ? or hs country The ert e VPP EPL F heats posed by companies usr! snes like Huawei remain in dit- Figure 101. Mintaro land onetime hese come one pute, however, with many egKatsyem Trou qustae ture caine nwa ose Se ae et te its ‘ponte cia Garces recon ca acne Nigro Barop largely eben wo acs ous souce tyr 20 acc 1 Oe Ignoring the warnings from ppary source fey 20 lena 291 Cumey Nee 27 ‘Washington. At this writing, Have fed lawsuit in US courts in late May 2019 against the Trump admin station policy, which wl ely persist for some months to come, As Hues chief legal counsel pitit"The US. government has provided no evidence toshow that Huawei isaseturly thea. Theres no gun, no smoke, Only speculation ‘Monetary Relations satel ofthe globalization of trade and investments, monetary relations, the management of currencies cross-national, have become an ncreasingly ‘sgalGcant factor inboth international and domestic economic health. The glo- balzation of money's one aspect to consider, asa torrent of money amounting {oan estimated $12 quadrilion in 2017 red through the world economy. ‘Much of this flow involves exchanging one country's currency for another greatly increasing the importance of exchange rates, the values of currencies {relation teach other. Exchange rates and their stability (orlack thereof) are Important because they strongly Influence the few of trade and investment. ‘Map 10.1 shows the range of country approaches to exchange-rate management "Therearevariousexchange atesystems, dependingon th degree to which governments contrl rates tna fined exchange ate system, ike that in Saud ‘Arabia, rates are held constant or allowed to fuctuate within very narrow ‘bands Freely floating exchange rate systems allow the market alone to dete- rine rates mostof the world’s currencies ae Noating or fluctuating, Managed oat exchange rate systems allow rates to move freely on a daily Bass, bat rte sep fines Sedange rate est ‘eam pales ihre how many sou chapterto_ GLOBAL POLITICAL ECONOMY: pROTECTING WEALTH IN THE GLOBAL NORTH Map 10 gem ean g 2 encoun a a eaten errr me 8 Ne ge sere NILES ‘Saigeechangersmeinsee governments may intervene to prevent rats from moving toomuchinacertain iprernmens Cplnnge aan aed oe fined caren, Pu the TT ey oa managed Boating system 18. EEG] SS rane pekome cence vas eB oi SY sein Mexico Fa gm was pegged te US ol tse EOL SNM sae cuneies didn 1579 tothe Bropean Camere rope comnts opps 2s nuranda,7 apna Weck 2 mai a Ton aay What are te advantages and ade 2 sade eS at Who beet fom wet Yer TOME TES As seh 10.) demonstrates, weakand strongeSITeNey hou not be equated with a ond emeecrange tears ao eed ne TT ada eat ndatages for Americans oth when ee strengthening sae ey one units frei currenc andwhes he lar isweakenins (and cam buy fewer units of foreign cutenc) can bay oe el baliatino finan eves Sh 98 ange sgamnmedate the aban of mney 0 Se, ‘banks hav ine from homeo onatoal omntinal meg hat operate sro fom atu pes ond mney —or 2 BE Sa eT state the barking indy meen ran pea economy they cannes te Bo of Sa investier! see pote nani raneacions rons orders 8155 worth not a eae the tap thre large banks defined hatin a onmugh ei anking cn change mick with meee © a vimae| chinacertain povecnments| trchange rate jrasin Mexico if count st va market that padvantages to urvencies? AS pe equated with here are advan" strengthening aris weakening sucha bake es baste restha operate ‘Sethe cree faecal {owothpotng iy asset eal sieges ond lomrpieterorasn— USeipatimaeaatyin exer frUShmstosel srodeoecer forsgn mets Soodrondsees sad lowerrkesonfoson —_USfmeforsdtocomoste etree on US ems to Gredssevesresan —whbwerprcedinpets_heepwagesbenesiow oy Lesscotytotoltofacin Morecoyferloignes_eveafedable er oign Sete Ses Lesscontyforegnsicsy —_USsacbondemgrecony_USiverment mare Bs Riesesrcing twat Steet foremost apatite es acquisitions. Only three American banks were among the top 10 globally 2 2019: JPMorgan Chase (6th, Bank of America (th), and Wells Fargo CLOG). “Apether aspect of monetary relations isthe international regulation of money. As trade, transnational investing. and other forms of international eco ‘omic interchange increased during the 20th century, some mechanisms were foreign competition. ing, companies inthe herein the Novth are de data entry work, 0 vo write software, and wtoourcing has created ts to protect obs. The de/jb at home priot- ns feature ining poitial accord aI North, a5 witnessed a). The end of the Cold jon, lessened the need stern allies Asa result, | countries pan the nce been suppressed in ‘an examination ofthe tension between calle more nationalistic views tries, ike the United igh tensions exis across ie the iberal economic rosin the foundation of servation of those econe- ystem,Purther staining ingeonictsin aqand suey ofthe Norther in continued invlvement nent atu found that ory output inthe United pons eld mainly tothe ned forces" As est, sie for some Norther States (ee Figure 103). Sioa oe How Would You Handle the Chinese Economic Challenge? ® (hina and he Unites ttre singly on an nomic clison cause, especaly ander the Tum ‘egme The pst o confit megs with the US rade efit wih China shown Table 13 ss Bren "ely mounting an each $376 bone 2007 US fal pu pat ofthe lame forthe don Chi’ alert foto deal wth te lea reduction eenthing fom musi to movie ane ava tom hina. Te US enetaanent and fare ets lone estimate that they hat st S26 bon to such Pacy USoffclae ako damed that eng masta tng an ati high yun-o dol exchange value ter the dor weslened appt most cured. Repeated demos by US oe that China mend ayshave been baceby Congres, which recent threatened to enact singer US ts on Cine goods ules eng gave wy, "A the US allegation i hat China provides eco nomisubsaiestomany ints, wich ives tha an unfatadvantage. Unt recent the istry of US ‘con was not one of sit or are ply stances. Under Presiden Trump, however, pocy ha akon 3 much mre belie ine, fter maths of hoster and iia poy Forays on rade ith hina, ume ‘rte esata the ape ovr aden sping 201 by imposing even mae tars on Chinese exports to ‘the United States. When he posed the st wave of tars on Cin, he argued tha “Chin apparent ha nointenton of changing ts uf prectes lted to {he acuston of Amercan Inlet property and ‘Table 10.3 US-China Trade THE DOMINANT GLOBAL ECONOMIC ins TITUTIONS technology Rater han aking thore paces ti row thestening Unites States companies, wakes 2d famers who have done noting wang” Thus far, mos of Tramps wade sonevons haw been un eran om the Ofies of the Present under 9 tie obscure lw alloving hen to undertake ston te protect ntoal secur thy hive not been sup ported by lege action by Congress. father on {aly ts tbe US lamers an wore who have borne ‘he bunt ofthese sanctions, tthe Cine comps ries tracted, What do you thnk? agin you ate a US sen tor deciding on whether to vote Ont competing + Tafistis2esoluton urging he White Hout fotow ait dpomacy nd persue Chae acon hue economies + Thesecondiarerolsion supporting he conus Ctonof Raed sanctions + The this abi oimpose 25% tatfonalUS Inport rom china unl he president eres hat China flog btgitons. hich would youchoose and why? Whataretheadvan- Lagesandisavartages ofeach pol his worth con Stern the reatve ecanomie power of ech county, tho eve of imedependnce wih each thr wh righ be the longer tem ingens of US actin a 1 poly aes ae even ho might benef domes cal fom cach epproach, ‘Tibet cartes safer rong moda the 1900 Ucn rade bon to ie moe kia ‘he 960s thn erened amas after 200 ecard he Ste ee wth China parm pa Icweda snr couse caning om a wate bane 86503 Seon en 2oato8337e Ban Sen 2017 Tse lepsidedmbes ave aestedncesang tensors anon rece ure ates am Chat Pesdet ‘Aigueseilenso Us dts rr $129 Usimpor fem Cs sss s100 Sa sos Usuadedeterwtonng = 50 S10 hams os so_chapurto GLOBAL POLITICAL ECONOMY: PFC trade Cooperation Under the WTO rmination of trade cooperatio® m global commerce swith the institution that he World Trade | ‘We begin our ex | | werd de rion ea a de Se TO. aac a pfnsundey= i Guneral Agreement on Tariffs \] \| thecaneataeeenton Torsand Wate GAT Sere ofnteraational agreement ership of 23 countries as Taations initial mer Tan ed and Trade GATD). Then cnet sonar epandedo164menbers and non ail member counris ae seek, aries rae eeing tht GATT rial miso ection of trade none tein en nn posoned seve of ale eT called rounds, | Scag athe ra an of rede and capital, The most Tc | haa ede ba Rand, zanna haps the most | ‘he Clobal South, where asthe focus 0” jac developing counties needs ands thehestt ae gation round” Aworg ystems raN mie of ecopmentisa major reason ote ne foc oe process ess Nochenrcentric a D006 withoxt any significant uted ean recuse ot Cetdeamrwedeiate fort was wepomtecmenie=d ofthe Work Progra se isreceogimeen—oghtargue tat th Sigaificantachieverent for Dob begin 8 Dah progres was aranesas Tesh ae cada, The Doha Round was suspende bata men, able eine was eee yielded ite of ubstance to date a ares trey ein Gener, Sten, he TOES regular eee canane meiene a al prmnence hat teGATT BP | emomcmeinge sneha Se Act ear andoetleade ste Countriscan le ese pis one another for aged elon the GATT. This body \ comes saa te compat nf finds a viltion, ee eoriae inred coxnties 1 he offending owing their Sovere'atF by erties about countries | untry Despite grombling ; of about 0 cases - rity policies as wellasa EU entry. chose counties that mot snagement (limited ith few exceptions, 1 to adpt the exe. io ountres, while hel «Rots, 2004) 1 euro, and three oth and Monaco) have als ingdom, Denmark, 374 fhe countries that hav unties (Estonia Latvia the newer members at REGIONAL AND BILATERAL ECONOMIC COOPERATION slated to traniton tothe euro once they achieve the require benchmarks of financial stability ‘Creating the euro was important both economically and politically. Beo- somiclly, thas tied the EU members even closer together by eliminating one tf the hallmarks ofan independent economy, a national currency. Adding to ‘he economic importance of adopting a common currency that may well one dy spread across an entire continent, theres great political symbolism inthe ‘replacement of Germany’: deutschemark, Franc’ franc, alia, and other untres’ national currencies with the euro, Increased economic integration, however has not been without its opponents. For example, the United Kingdom firs rejected use ofthe euro, and then in June 2016 narromly voted to withdraw from the EU entirely and began ts alting journey todo s0 (perhaps). That ote for Brext shook the EU politically and economically. Missing the riginal ext date of Match 29,201, the details of EU-UK divorce have yet tobe finalized. Only time wil tll what outcome ultimately isimplemented and what types of consequences for economic prosperity wil occu throughout Europe (Kepler, Bsunoga, Ysilada, 2015). "Thee comes a pont where economic integration cannot continue without ale taking steps toward political integration. The Maastricht Treaty was sig- "ifcant not only fr establishing a common currency, bt als for expanding a ap 102 shaman san Chaper10- GLOBAL POLITICAL ECONOM': PROTECTING WEALTH IN THE GLOBAL NORTH rope citzenship he treaty called forthe BU to act increasingly 25 Fo Treat cnicby eventually creating a common foreign and defense policy and 2 aaa an oonal policy relating to such issues as crime, erorism, and im

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