Found 15 article(s) for author 'Trade'

On Trade Justice: A Philosophical Plea for a New Global Deal

On Trade Justice: A Philosophical Plea for a New Global Deal. Mathias Risse, October 2019, Book, “Trade has made the world. Still, trade remains an elusive and profoundly difficult area for philosophical thought. This novel account of trade justice makes ideas about exploitation central, giving pride of place to philosophical ideas about global justice but also contributing to moral disputes about practical questions. On Trade Justice is a philosophical plea for a new global deal, in continuation of, but also at appropriate distance to, post-war efforts to design a fair global-governance system in the spirit of the American New Deal of the 1930s. This book is written in the tradition of contemporary analytical philosophy but also puts its subject into a historical perspective to motivate its relevance. It covers the subject of trade justice from its theoretical foundations to a number of specific issues on which the authors’ account throws light. The state as an actor in the domain of global justice is central to the discussion but it also explores the obligations of business extensively, recognizing the importance of the modern corporation for trade. Topics such as wages injustice, collusion with authoritarian regimes, relocation decisions, and obligations arising from interaction with suppliers and sub-contractors all enter prominently. Another central actor in the domain of trade is the World Trade Organization. The WTO needs to see itself as an agent of justice. This book explores how this organization should be reformed in light of the proposals it makes. In particular, the WTO needs to endorse a human-rights and development-oriented mandate. Overall, this book hopes to make a theoretical contribution to the creation of an exploitation-free world.Link

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Dollar Dominance in Trade and Finance

Dollar Dominance in Trade and Finance. Gita Gopinath, 2019, Book Chapter, “According to the major paradigm in international macroeconomics, namely the Mundell-Fleming paradigm (Mundell 1963; Fleming 1962), the importance of a country’s currency in international trade is tied closely to its share in world trade. This is because each country is assumed to export its goods in its own currency. That is, if we consider trade among the United States, India, and Japan, the assumption is that all exports from the United States are invoiced in dollars, all exports from Japan are invoiced in yen, and all exports from India are invoiced in rupees. Further, because the paradigm assumes that prices are sticky in the exporter’s currency, exchange rate fluctuations across countries affect their bilateral terms of trade, defined as the ratio of the at-the-dock price of imports to that of exports.Link

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Prices vs. Quantities Across Jurisdictions

Prices vs. Quantities Across Jurisdictions. Martin Weitzman, October 23, 2018, Paper, “We extend the standard ‘prices vs. quantities’ framework for pollution control to cover multiple heterogeneous jurisdictions interacting strategically with each other. When multi-jurisdictional externalities are present and the uncertainties among jurisdictions…Link

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Globalization and Inequality

Globalization and Inequality. Elhanan Helpman, 2018, Book, “Globalization is not the primary cause of rising inequality. This may come as a surprise. Inequality within nations has risen steadily in recent decades, at a time when countries around the world have eased restrictions on the movement of goods, capital, and labor. Many assume a causal relationship, which has motivated opposition to policies that promote freer trade. Elhanan Helpman shows, however, in this timely study that this assumption about the effects of globalization is more myth than fact.Link

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The Republicans’ Protectionist Pedigree

The Republicans’ Protectionist Pedigree. Jeffrey Frankel, June 13, 2018, Opinion, “In recent decades, US Republicans have tended to embrace free trade more willingly than US Democrats. But, during most of its first century, the Republican Party was protectionist in both word and deed, and it has elected the four most aggressively protectionist presidents of the last 50 years.Link

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Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings

Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings. Gita Gopinath, Jeremy Stein, May 2018, Paper, “We develop a model that shows how the currency denomination of a country’s imports influences the funding structure of its banking system, and in turn, the currency composition of its central bank’s reserve holdings. The link between the dollar’s role in bank funding and its role as a central bank reserve currency is stronger when the country’s fiscal capacity is limited, and when exchange rates are volatile. In the data, there is a pronounced cross-country relationship between the fraction of imports that are dollar invoiced, and the fraction of central-bank foreign-exchange reserves that are held in dollars.Link

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Does Trade Fuel Inequality?

Does Trade Fuel Inequality? Jeffrey Frankel, January 2, 2018, Opinion, “To explain the rise in inequality that began in the 1980s and has accelerated since the turn of the century, many have pointed out that indicators of globalization, such as the trade-to-GDP ratio, have also been rising rapidly over the same period. But does that correlation imply a causal link between trade and inequality?Link

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Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade

Company Stock Price Reactions to the 2016 Election Shock: Trump, Taxes, and Trade. Richard Zeckhauser, August 17, 2017, Paper, “Donald Trump’s surprise election shifted expectations: corporate taxes would be lower and trade policies more restrictive. Relative stock prices responded appropriately. High-tax firms and those with large deferred tax liabilities (DTLs) gained; those with significant deferred tax assets from net operating loss carryforwards (NOL DTAs) lost. Domestically focused companies fared better than internationally oriented firms. A price contribution analysis shows that easily assessed consequences (DTLs, NOL DTAs, tax rates) were priced faster than more complex issues (net DTLs, foreign exposure). In sum, the analysis demonstrates that expectations about tax rates greatly impact firm values.Link

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The State of the World with Rawi Abdelal

The State of the World with Rawi Abdelal. Rawi Abdelal, February 24, 2017, Audio, “At this moment of great geopolitical change, Davis Center Director Rawi Abdelal looks at the fate of globalization through the lenses of great power transitions, national borders, and economic inequality. Rawi Abdelal is the Herbert F. Johnson Professor of International Management at Harvard Business School and the Director of Harvard’s Davis Center for Russian and Eurasian Studies. His work focuses on international political economy and the politics of globalization and political economy of Eurasia.Link

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Globalization, Inequality and Welfare

Globalization, Inequality and Welfare. Pol Antras, September 19, 2016, Paper, “This paper studies the welfare implications of trade opening in a world in which trade raises aggregate income but also increases income inequality, and in which redistribution needs to occur via a distortionary income tax-transfer system. We provide tools to characterize and quantify the effects of trade opening on the distribution of disposable income (after redistribution). We propose two adjustments to standard measures of the welfare gains from trade: a ‘welfarist’ correction inspired by the Atkinson (1970) index of inequality, and a ‘costly-redistribution’ correction capturing the efficiency costs associated with the behavioral responses of agents to trade-induced shifts across marginal tax rates.Link

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