1. International Trade

3. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)

4. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)

5. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)

6. Production possibilities for two countries Pre-trade exchange ratios Less developed country: 2 wheat for 1 cloth Developed country: 1 wheat for 2 cloth International trade exchange ratios Less developed country: 1 wheat for 1 cloth Developed country: 1 wheat for 1 cloth (LDC exports wheat: DC exports cloth)

11. The cost of protection O P Q S dom (= MC ) Q 1 Q 2 S world P W D dom

12. The cost of protection O P Q S dom (= MC ) S world + tariff S world a Q 1 Q 2 P W + t P W D dom Area edbc equals loss of consumer surplus d e c b Q 3 Q 4 Tariff

13. The cost of protection O P Q S dom (= MC ) S world + tariff S world a Q 1 Q 2 Q 3 Q 4 P W + t P W D dom Area 3 equals gain in tariff revenue Area 1 equals gain in producer surplus d e c b 1 2 3 4 Tariff

14. The cost of protection O P Q S dom (= MC ) S world + tariff S world a 1 2 3 4 Q 1 Q 2 Q 3 Q 4 P W + t P W D dom Areas 2 + 4 equals net loss d e c b Tariff

16. Growth in world real GDP and world merchandise exports Source: Trade Statistics , WTO (www.wto.org)

17. Growth in world real GDP and world merchandise exports Growth in real GDP Source: Trade Statistics , WTO (www.wto.org)

18. Growth in world real GDP and world merchandise exports Growth in real GDP Growth in merchandise exports Source: Trade Statistics , WTO (www.wto.org)

30. World primary commodity prices (1990 = 100)

31. World primary commodity prices (1990 = 100)

32. World primary commodity prices (1990 = 100)

33. World primary commodity prices (1990 = 100)

34. Average annual changes in prices of various products

35. Average annual changes in prices of various products

39. Growth rates and export performance of selected secondary outward-looking countries

40. Growth rates and export performance of selected secondary outward-looking countries

41. Growth rates and export performance of selected secondary outward-looking countries

42. Growth rates and export performance of selected secondary outward-looking countries

43. Growth rates and export performance of selected secondary outward-looking countries