chap 12 (1)
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Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
Explanations for trade
Classical 2. Opportunity costs 3. Comparative advantage
Neo-classical 4. Production structure 5. Factor prices 6. Production volume 7. Factor abundance
1. The world economy
New trade 9. Imperfect competition 10. Intra-industry trade
Policy
8. Trade policy
11. Strategic trade policy
12. Int. trade organizations 13. Economic integration
17. Applied trade policy modeling
Economicgeography
New interactions 14. Geographical economics 15. Multinationals 16. New goods, growth, and development
Industrialorganization
Internationalbusiness
Growth theory
Part
IPa
rt I
IP
art
III
Part
IV
18. Concluding remarks
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
Introduction International Trade & the World Economy; Charles van Marrewijk
Objectives / key terms
Beggar-thy-neighbor World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT) United Nations (UN)
UN Conference on Trade and Development (UNCTAD)
Organization of Economic Cooperation and Development (OECD)
Central and Eastern European economic transition process
Jan Tinbergen (1903-1994)
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
The World Trade Organization (WTO/GATT) International Trade & the World Economy; Charles van Marrewijk
The international GATT agreement is based on three principles:
• Non-discrimination; as expressed in two sub-principles
- Most Favored Nation (MFN) treatment
- National treatment of foreign products
Two main exceptions to the non-discrimination principle:
- Free trade areas and customs unions
- Developing countries
• Reciprocity (exception: developing countries)
• Prohibition on trade restriction other than tariffs (exception in case of balance-of-payments problems)
The World Trade Organization (WTO/GATT) International Trade & the World Economy; Charles van Marrewijk
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1945 1955 1965 1975 1985 1995
year
num
ber
of c
ount
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at s
tart
Firs
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Sec
ond Thi
rd
Fou
rth
Dillon
Kennedy
Tokyo Uruguay
Duration of GATT rounds and number of countries involved.
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
The United Nations (UN) and UNCTAD International Trade & the World Economy; Charles van Marrewijk
UN established in 1945, deals with many issues (culture, human rights, security, etc.); for economics most important ECOSOC:
• Programs and Funds; UNCTAD, UNDP, UNHCR, UNICEF, etc.
• Functional Commissions; Social Development, Human Rights, etc.
• Regional Commissions; ECA, ECE, ECLAC, ESCAP, etc.
• Specialized (independent) Agencies; ILO, FAO, UNESCO, WHO, WorldBank, IMF.
UNCTAD established out of dissatisfaction with the role of developing countries in the world economy (Group of 77); publishes the World Investment Report.
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
Organization for Economic Cooperation & Development, OECD International Trade & the World Economy; Charles van Marrewijk
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
Case study: economic transition in Central and Eastern Europe International Trade & the World Economy; Charles van Marrewijk
Incr
easi
ng d
egre
e of
pri
vate
con
trol
market socialism
Increasing degree of private property
capitalism
welfare state
socialism /communism
A
Economic transition has different dimensions
Case study: economic transition in Central and Eastern Europe International Trade & the World Economy; Charles van Marrewijk
Manufactures
Food
O
A
B
C
DE
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Case study: economic transition in Central and Eastern Europe International Trade & the World Economy; Charles van Marrewijk
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1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Hungary
Poland
Slovak Rep.
Russia
Ukraine
GDP/capita (index, 1990 = 100)
Introduction
The World Trade Organization (WTO/GATT)
The United Nations (UN) and UNCTAD
Organization for Economic Cooperation and Development (OECD)
Case study: economic transition in Central and Eastern Europe
Conclusions
CHAPTER 12; INT. TRADE ORGANIZATIONSInternational Trade & the World Economy; Charles van Marrewijk
Conclusions International Trade & the World Economy; Charles van Marrewijk
GATT, replaced by WTO, deals most directly with international trade problems (GATT rounds to reduce trade barriers become more complicated, take longer and involve more countries over the years).
UN organizations affect all aspects of human life; UNCTAD focuses on problems of developing countries.
OECD is organization of economically more advanced countries.
Adjusting a country’s organizational and institutional framework is an enormous and time-consuming process, as illustrated by the Central and Eastern European countries.