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Lecture 12 - Global Economy
ECON 360 International Economics
Quiz
1. What are the two accounts in
balance of payments?
2. If you have a deficit in your
current account what do you
have in the capital account?
The Institutions of
Globalization
Exporters
vs.
Importers
1930s
Decade of Disaster
Smoot Hawley Act
1930
Increased tariffs by 50%
General Agreement on Tariffs and
Trade
GATT
1947-1994
World Trade Organization
WTO
1994 -
GATT
Most Favored Nation
MFN
Dumping
Subsidies
Quotas
Infant Industries
GATT
Is not an organization, it’s an
agreement.
Negotiating Rounds
Nine
Across the Board
vs.
Product by Product
Non-Tariff Protection
U.S. Congress grants
President
“Fast-Track” Authority
Negotiating Rounds
Nine
Doha
Uruguay
1986-1994
WTO
Tariffs
Developed Countries
3.8 Percent
Developing Countries
12.3 Percent
Biggest Challenge?
Agricultural Products
Textiles
Footwear
Agricultural Products
Tariffs
Quotas
Price Supports
Subsidies
Uruguay
Services - GATS
Investments - TRIMs
Intellectual Property - TRIPs

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Int 12