Synopses & Reviews
In this book Ralph Gomory and William Baumol adapt classical trade models to the modern world economy. Trade today is dominated by manufactured goods, rapidly moving technology, and huge firms that benefit from economies of scale. This is very different from the largely agricultural world in which the classical theories originated. Gomory and Baumol show that the new and significant conflicts resulting from international trade are inherent in modern economies.Today improvement in one country's productive capabilities is often attainable only at the expense of another country's general welfare. The authors describe why and when this is so and why, in a modern free-trade environment, a country might have a vital stake in the competitive strength of its industries.
Review
"The church of global free trade, which rules American politics with infallible pretensions, may have finally met its Martin Luther. An unlikely dissenter has come forward with a revised understanding of globalization that argues for thorough reformation. This man knows the global trading system from the inside because he is a respected veteran of multinational business. His ideas contain an explosive message: that what established authorities teach Americans about global trade is simply wrong disastrously wrong for the United States." William Greider The Nation The MIT Press
Review
"This book is a gem and reads like a thriller. John McDonald was a superb business writer who combined an innate understanding of context with an appreciation of strategy. The book should be read by all who are concerned with business reporting, business, and legal advice."--Martin Shubik, Cowles Foundation for Research in Economics, Yale University The MIT Press
Synopsis
Ralph Gomory and William Baumol adapt classical trade models to the modern world economy.
In this book Ralph Gomory and William Baumol adapt classical trade models to the modern world economy. Trade today is dominated by manufactured goods, rapidly moving technology, and huge firms that benefit from economies of scale. This is very different from the largely agricultural world in which the classical theories originated. Gomory and Baumol show that the new and significant conflicts resulting from international trade are inherent in modern economies.Today improvement in one country's productive capabilities is often attainable only at the expense of another country's general welfare. The authors describe why and when this is so and why, in a modern free-trade environment, a country might have a vital stake in the competitive strength of its industries.
Synopsis
Ralph Gomory and William Baumol adapt classical trade models to the modern world economy.
Description
Includes bibliographical references (p. [189]-192) and index.
About the Author
William J. Baumol is Professor of Economics at New York University and Director of the university's C. V. Starr Center for Applied Economics.
Table of Contents
The modern global economy and inherent trade rivalry: introduction -- Significance of the multiple outcomes that result form economies of scale -- Regions of equilibria: desirable and undesirable market-based outcomes -- Multiple outcomes that result from productivity changes -- Conclusion for part I -- The economies model, the equilibria, and the number of specialized outcomes -- Mapping trade outcomes: the shape of the graph, beneficial and harmful epilibira, and the role the market -- Conflicting national interests in linear trade models -- Three-country models and other complications -- Predecessors -- Empiral evidence: the persistence of specialization in industrialized countries / (by Edward N. Wolff).