International Trade

McLaren's International Trade covers all of the conventional theory that students are expected to learn, but presents it in a modern and unique way. Aiming to teach students how to use economic theory instead of merely memorizing economic theory, International Trade introduces each topic with a real-world policy problem followed by the models and theories in an applied approach. This approach encourages more student engagement with the material and fosters a view of model theory as a tool for understanding the world. The text is designed well for undergraduate students but can be used in MBA, and Masters of Public Administration courses in international economics.

About the Author v

Preface vii

Part I. Engines of Globalization

1 A Second Wave of Globalization 1

2 Should Nigeria Strive for Self-Sufficiency in Food? 13

3 Why Do Americans Get Their Impalas from Canada? 30

4 Trade and Large Corporations: Kodak versus Fuji 48

Part II. Politics and Policy in the World Economy

5 Why Did the North Want a Tariff, and Why Did the South Call It an Abomination? 64

6 Is Free Trade a Rip-off for American Workers? 86

7 Why Doesn’t Our Government Want Us to Import Sugar? 108

8 Who Are the WTO, and What Do They Have Against Dolphins? 135

9 Should Developing-Country Governments Use Tariffs to Jump-start Growth? 152

10 Was Ronald Reagan Punked by Japanese Automakers? 173

Part III. Current Controversies

11 Should the iPod Be Made in the United States? 188

12 Should We Build a Border Fence? 210

13 Trade and the Environment: Is Globalization Green? 226

14 Sweatshops and Child labor: Globalization and Human Rights 239

15 Is NAFTA a Betrayal of the Poor or a path to Prosperity? 263

Part IV. Macroeconomic Aspects of Globalization

16 Is the Trade Deficit a Time Bomb? 286

17 Trade and Exchange Rates: Is the Renminbi the Culprit? 304

Index 327

John McLaren has a Ph.D in Economics from Princeton. He has been teaching International Trade in the Economics department at the University of Virginia for over 10 years and is well-published in key journals in economics. His motivation for writing the text is to have a better book with which to teach his own course.