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escalation, 117119 evasion, 120122 export, 112 Ford strips its wagons to avoid high, 120121 import, 112, 120124 optimum, 134135 outsourcing and offshore-assembly provision (OAP), 119120 and the poor, 139140 protective, 112 quotas versus, 159161 revenue, 112 scientific, 145 smuggled steel evades U.S., 121122 specific, 113 steel, 138139 tire, 201 two-tier, 161163 types of, 113115 used for WTO enforcement, 198199 Tax code sending American jobs offshore, U.S., 330 Technical forecasts, 426428 Technology as source of comparative advantage, 9396 Technology transfer, 326328 Telsa Motors, 104 Terms of trade, 31, 41 Terms-of-trade effect, 133 Terrorism jolts global economy, 2426 Terrorist attacks and U.S. freight system, 105107 Text, plan of this, 26 Textiles from China, imports of, 205206 Theorem, Stolper-Samuelson, 7679 Theories factor-endowment, 7071 of overlapping demands, 90 product cycle, 9396 product life cycle, 93 of reciprocal demand, 43 specific-factors, 81 visualizing factor-endowment, 7273 Theory of money, quantity, 434435 Third World, India breaking out of, 266268 Three-point arbitrage, 386 Tire companies, American, 201 Tire tariff ignites Chinese officials, 201 Tokyo Bay, 182 Tokyo Round, 179, 194 Tourists, dollar and European, 381 Toyota Motor Co., 124, 165 Trade adjustment assistance, 215216 applying factor-endowment theory to U.S.-China, 7374 balance, 346, 350 barriers. see Nontariff trade barriers (NTBs), barter terms of, 4445 basis for, 31 commodity terms of, 4445 common fallacies of international, 1819 and distribution of income, 8182 dynamic gains from, 4547 dynamic gains from international, 45 fairness in, 143144 free, 32 gainers and losers from, 7679 gains from international, 31 interindustry, 90 international, 2022 intra-industry, 9093 outer limits for the equilibrium terms of, 42 overlapping demands as basis for, 90

and the poor, 8287 promoting freer, 192193 region of mutually beneficial, 42 remedy laws, 203 terms of, 31, 41 and welfare effects, 156158 why nations, 3233, 3436 Trade boom, falling transportation costs foster, 103105 Trade characteristics, developing-nation, 231233 Trade deficits currency depreciation and, 447450 dollar depreciation and not closing U.S., 456 Trade disputes, settling, 196197 Trade diversion, NAFTA and, 297298 Trade flows, rising energy costs to hinder, 104 Trade in crude oil and autos, 43 Trade liberalization, United States falls behind on, 274 Trade negotiations failed, 202203 multilateral, 193195 Trade on jobs, impact of, 5253 Trade patterns, 710 Trade policies for developing nations, 231269 aiding developing nations, 249255 Chinas transformation to capitalism, 262266 developing-nation trade characteristics, 231233 East Asian economies, 260262 economic growth strategies, 255260 import substitution versus export-led growth, 255260 India breaking out of Third World, 266268 OPEC oil cartel, 245249 stabilizing primary-product prices, 241244 tensions between developing and advanced nations, 233234 trade problems of developing nations, 234241 Trade policy, strategic, 221223 Trade problems of developing nations, 234241 Trade promotion, authority, 203 Trade protection, and recession, 128129 Trade regulations and industrial policies, 187230 antidumping duties, 207212 countervailing duties, 206207 Doha Round, 202203 economic sanctions, 223227 emergency protection from imports, 203206 failed trade negotiations, 202203 fast-track authority, 203 General Agreement on Tariffs and Trade (GATT), 190195 industrial policies of Japan, 220221 industrial policies of United States, 218220 protection against foreign dumping, 207212 protection against foreign export subsidies, 206207 protection of intellectual property rights (IPRs), 213215 Reciprocal Trade Agreements Act, 190 safeguards (escape clause), 203206 Section 301 - protection against unfair trading practices, 212213 Smoot-Hawley Act, 188190 strategic trade policy, 221223 trade adjustment assistance, 215216 trade promotion authority, 203 U.S. tariff policies before 1930, 187188 wage and health insurance, 216218 World Trade Organization (WTO), 195201

Trade relations, normal, 190 Trade restrictions, arguments for, 140150 Trade substitute for migration, international, 8081 Trade theory historical development of modern, 3136 international, 319320 Trade theory, foundations of modern, 3167 changing comparative advantage, 4748 comparative advantage and job outsourcing, 5863 comparative advantage extended to products and countries, 5355 dynamic gains from trade, 4547 empirical evidence on comparative advantage, 5657 exit barriers, 5556 historical development of modern trade theory, 3136 impact of trade on jobs, 5253 production possibilities schedules, 3738 trading under constant-cost conditions, 3845 trading under increasing-cost conditions, 4952 Trade triangle, 41 Trade without discrimination, 191192 Trade-creation effects, 277 Trade-diversion effect, 277 Traders currency markets draw day, 400401 foreign exchange, 400 Trade-weighted dollar, 384 Trading under increasing-cost conditions, 4952 interbank, 373375 possibility line, 41 Trading arrangements, regional, 271308 Asia-Pacific Economic Cooperation (APEC), 302 dynamic effects, 278279 economic costs and benefits of common currency, 286292 effects of, 275279 European Monetary Union (EMU), 286292 European Union (EU), 280286 Free Trade Area of the Americas (FTAA), 300302 impetus for regionalization, 275 North American Free Trade Agreement (NAFTA), 292300 regional integration versus multilateralism, 271272 static effects, 276278 transition economics, 302306 types of, 272275 United Kingdom (UK) and entering European Union (EU), 278 Trading practices, protection against unfair, 212213 Trading under constant-cost conditions, 3845 Transactions credit, 343 debit, 343 forward, 372 official settlements, 348 spot, 372 Transfers pricing, 329331 technology, 326328 unilateral, 347 Transition economics, 302306 Transplants in U.S. automobile industry, Japanese, 320321

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