The politics of international trade

Preface 4I Introduction and Theory 12 1 Introduction: The Focus of the Book 14 1.1 The Traditional Approaches to Trade Policy: Liberal, Realist and Marxist 17 1.2 Levels of Analysis & Trade Policy: Society, State and the International System 20 2 Introduction to Theory 25 2.1 The Normative or ‘Policy’ Approach 25 2.2 The Positive or Analytical Perspective 27 3 Liberal Theory 30 3.1 The basic tenets of the liberal perspective 31 3.2 The Assumptions of Liberalism 33 3.3 The Liberal View of International Trade 34 3.4 The Liberal View of Development 35 3.5 Absolute Advantage vs. Comparative Advantage 38 3.6 Critiques of the Liberal Perspective 40 4 Realism 43 4.1 Two Strains of Realism 45 4.2 Basic Tenets of the Realist Perspective 46 4.3 Motives of the Actor in Realism 47 4.4 The Definition of Power 48 4.5 The Elements of Power: Power Capabilities and Power Resources 48 4.6 The Nature of International Relations According to Realism 49 4.7 Realism and Development 51 4.8 Realism and Game Theory 53 4.9 The Prisoner’s Dilemma Game 545 Marxism / Structural Theory 59 5.1 The Basic Tenets of the Marxist Perspective 60 5.2 The Evolution of Marxism 61 5.3 Imperialism 63 5.4 Dependency Theorists 64 5.5 Import Substitution Industrialization (ISI) 65 5.6 Critiques of Dependency Theory 68 5.7 World Systems Theory 69 5.8 Gramscian Theory 70II Trade Policy 72 6 The Tools of Trade Policy 74 6.1 Tariffs 76 6.2 Import Quotas 78 6.3 V.R.A.s 79 6.4 Standards 80 6.5 Technological Standards 81 6.6 Export Subsidies 82 6.7 Agricultural Subsidies 83 7 Justifications for Trade Protection 84 7.1 Infant Industries 84 7.2 Defense 85 7.3 Jobs 86 7.4 Income Distribution 87 7.5 Strategic Trade 88 7.6 Technology and Knowledge Spillovers 91 7.7 Optimum Tariff Theory 93III Theoretical Perspectives on Trade 94 8 Three I.R. Theoretical Approaches to Trade 96 8.1 The Liberal View on Trade 98 8.2 Marxist Opposition to Free Trade 99 8.3 Realist Argue Against Free Trade 101 9 Societal Theories of Trade 102 9.1 Group trade policy preferences 103 9.2 Collective Action 104 9.3 The Factors of Production Theory 105 9.31 The Stolper - Samuelson Theory 108 9.32 The Magnification Effect 109 9.33 The China-U.S. Trade Policy Example 111 9.34 Critiques of Hecksher - Ohlin Trade Theory: Intra-Industry Trade 115 9.4 The Reasons for Intra-Industry Trade 117 9.41 Consumer Taste 117 9.42 Economies of Scale 117 9.43 M.N.C. Networks 120 9.44 The Product Lifecycle 125 9.5 The Sectors Model of Trade Policy 126 9.51 General Problems with the Factors Model of Trade Policy 126 9.52 Criticism of the Assumption of Factor Mobility 127 9.53 When Factors are not Mobile 128 9.54 The Collective Action Problem 133 9.55 Non-Excludability 133 9.56 The Cost of Organizing 134 9.6 The Factors Model vs. The Sectors Model 138 10 Institutional Theories of Trade Policy 139 10.1 Representation 142 10.2 Electoral System Rules 142 10.3 Constituency Size The Effect of Large Electoral Districts 144 10.31 The Effect of Large Electoral Districts 146 10.4 The U.S. Shift from Protectionism to Free Trade 147 10.41 RTAA 149 10.42 Fast Track Policy Making Rules 151 10.43 The Bureaucratic Safety Valve 152 11 An International Theory of Trade Policy: Hegemonic Stability 155 11.1 Hegemony and Free Trade 159 11.2 The Hegemon’s Free Trade Motives 160 11.3 Realist Hegemony Theory 161 11.4 Liberal Hegemony Theory 162 11.5 Measuring Hegemony 164 11.6 Hegemonic Stability Theory’s View of World History 166 11.61 Great Britain’s Hegemony 166 11.62 The Decline of British Hegemony 168 11.63 U.S. Hegemony 170 11.64 The Decline of U.S. Hegemony 171 11.7 Explaining the Hegemon’s Decline 173 11.71 Kennedy’s Imperial Overstretch 173 11.72 Olson’s Rent Seeking Groups 174 11.73 Hegemony and Currency Overvaluation 179 11.8 Is the U.S. in Decline? 181 11.81 A Decline in Threats after the Cold War 183 12 Testing Different Theories…

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