Ethics in International Trade

This paper analyzes the effects of changes in relative commodity prices on the distribution of income among factors of production in the context of two models of a simple, two-good economy. In the first model capital is treated as a specific factor in each industry, with labor mobile between industries. The assumption of specificity determines the direction of factor income changes, with magnitudes depending on substitutability between factors and on intensities of factor use within the two industries. In the second model, capital is viewed as a quasi-fixed factor. For the short run, this model is identical to the model first considered. For the long run, this model is identical to the Stolper-Samuelson model in which the direction and magnitude of factor income changes depend solely on relative factor intensities. The difference between the short-run and long-run determinants of changes in factor incomes gives rise to a conflict between factor owners' short-run and long-run interests.

International Migration and Trade: A Multi-Disciplinary Synthesis

Abstract: This chapter on "Global Business and Trade Strategies" provides a comprehensive exploration of the key concepts, economic impact, and historical evolution of global business and trade. It highlights the fundamental importance of international trade in promoting economic growth, improving efficiency, and fostering innovation. The chapter traces the historical context through an examination of early trade routes, the colonial trade era, the Industrial Revolution, and modern trade agreements like GATT, WTO, NAFTA, and TPP. The chapter delves into the drivers of global business, including economic policies, market demand, technological advancements, and cost efficiencies, and explores how globalization has reshaped business strategies to achieve competitive advantage. It analyzes the global trade environment through the lens of economic, political, legal, and cultural factors, and discusses key international trade theories such as comparative and absolute advantage. The roles of international economic institutions, trade policies, tariffs, and trade agreements are examined, along with strategies for managing cultural diversity in international business. Market entry strategies such as exporting, importing, foreign direct investment (FDI), joint ventures, strategic alliances, licensing, and franchising are thoroughly examined, with a focus on benefits, challenges, and best practices. The chapter also emphasizes global supply chain management, including logistics, risk management, and the role of technology. International marketing strategies, financial management, and legal and ethical issues are addressed, highlighting the importance of digital marketing, currency exchange mechanisms, compliance, and corporate social responsibility. The chapter concludes with case studies of successful global business strategies and a summary of key points, future trends, and recommended further reading. Keywords: Global Business,International Trade,Economic Impact,Historical Trade Evolution,Globalization,Trade Theories,Economic Indicators,International Economic Institutions,Trade Policies,Cultural Differences,Market Entry Strategies,Exporting and Importing,Foreign Direct Investment (FDI),Joint Ventures,Strategic Alliances,Licensing,Franchising,Supply Chain Management,Logistics and Distribution,Risk Management,Digital Marketing,Financial Management,Currency Exchange,Risk Management,Budgeting and Forecasting,International Trade Laws,Ethical Business Practices,Corporate Social Responsibility (CSR),Intellectual Property Rights,Case Studies,Multinational Companies,Innovation,Competitive Advantage,Sustainability and Global Business Strategies.

An emergy and decomposition assessment of China-Japan trade: Driving forces and environmental imbalance

The global energy transition is characterized by a shift from fossil fuels such as coal, oil, and natural gas to cleaner and more sustainable energy sources. It is emphasized that hydrogen energy has significant potential for the development of innovative business, international trade, and energy transition for a sustainable post-carbon future. Currently, most hydrogen is consumed locally, without significant volumes of interstate supplies. It is noted that the development of this market faces many technical challenges, including high costs of producing “green” hydrogen, technical difficulties with the infrastructure for its transportation and storage due to low density, and the need to create large-scale infrastructure. Demand for hydrogen is growing as it plays a key role in decarbonization and greenhouse gas emissions reduction, especially in heavy industry, transportation, and energy systems. In the short term, hydrogen trade will likely occur mainly between neighboring countries through pipelines, limiting the scope of international trade until cost-reducing technologies are developed. In the long term, as demand for green hydrogen grows, especially in Europe and Asia, the trend toward active trade in this resource will gradually change. According to the most optimistic forecasts, the global hydrogen market will gradually grow until 2030, and the volume of international hydrogen trade may reach 120 million tons per year. It has been theorized that hydrogen is becoming increasingly important in the global energy system, and the geopolitics of energy trade will inevitably change. Energy geopolitics has traditionally been dominated by fossil fuel exporters such as the Middle East and Russia. However, the transition to hydrogen has the potential to decentralize energy production, making countries with rich renewable energy resources, such as the Persian Gulf, North Africa, and parts of Europe, key players in the new hydrogen market. This underscores the importance of developing international hydrogen supply chains, particularly from regions rich in renewable energy sources, such as North Africa, the Middle East, and Australia. Institutional support for the energy transition for a sustainable post-carbon future is implemented at the global and macro levels. At the global level, through a system of rules and regulations for the international market, international trade agreements and customs regulation, and international coordination on the implementation of hydrogen quality and safety standards. At the macro level, through government institutions, regulatory frameworks, and hydrogen economy development strategies, which have already become an integral part of the energy plans of many countries seeking to achieve carbon neutrality, reduce greenhouse gas emissions, and improve energy security. It is substantiated that the hydrogen market will face a difficult path related to solving technical and economic issues. However, thanks to the development of innovative business and technological innovations, support from governments, private investors, and various stakeholder groups, this sector has a great chance to become a key player in the future energy landscape, playing an important role in the decarbonization of the global economy. Keywords: innovative business, institutional support, energy transition, hydrogen, global hydrogen economy, energy geopolitics, decarbonization, sustainable development, sustainable post-carbon future, green transition, green investments, technological innovation, international trade, emissions trading system, regulation, strategic interests, economic interests, strategy of hydrogen use for energy, energy strategy, strategizing the hydrogen economy, country strategies, global development triggers, trade policy, environmental policy, international trade agreements, customs regulation, international trade.

Comparative study on transmission mechanism of supply shortage risk in the international trade of iron ore, pig iron and crude steel

<p>Global rice production and trade have strongly increased in recent years. Trade of rice corresponds to a high share of virtual resources shipped from a country to another one. While most of the studies have focused on single impacts embodied in international trade of agricultural products, this study reveals a complete overview of the three most relevant resources/impacts embodied in international rice trade such as water, land and CH4 emissions. Our analysis includes more than 160 countries for the period 2000-2016 by using country-specific impact factors. This trilateral analysis allows the assessment of tradeoffs between different impact categories and relative discussion about international trade policies. Indeed, while the outcome of the impacts embodied in trade is mostly due to the volume of rice traded, the three country-specific impact factors such as water demand, yield and emission factor also determinate the results thus revealing tradeoffs among the three impacts generated. Existing trade flows are mainly leaded by economic aspects rather than focusing on environmental performances. We conclude that international policies should lead developing countries, which are the largest exporters of rice and have a lower efficiency production, to invest in the improvement of their environmental performances thus maintaining their international market competitiveness.  </p>

Export Response to Trade Liberalisation in the Presence of High Trade Costs: Evidence for a Landlocked African Economy

WHITHER U.S. TRADE POLICY. BEYOND THE URUGUAY ROUND? IsaiahFmnk LJnitedStatestradepolicymakers indieClintonadministration, preoccupied with the daunting problems of obtaining congressional approval of the North American Free Trade Agreement (nafta) and the Uruguay Round and dealing with One "Japan problem," have had little opportunity to consider the longer-term future of U.S. trade policy beyond the Uruguay Round. Yet, it is essential to begin public discussion ofthe new issues that have to be addressed globally as theworld tradingsystem approaches theend of the twentieth century. These issues will have to be faced because the world does not stand still. More than a decade has passed since 1982 when the United States took the initiative to propose the agenda for an eighth round ofdie General Agreement on Tariffs and Trade (gatt) negotiations as a follow-up to the Tokyo Round that concluded in 1979. During that period, the pace ofchange in the nature and composition of international trade has accelerated. International trade no longer conforms to the textbook model of an exchange of British cloth for Portuguese wine. The specialization ofnational firms in particular products is being increasingly replaced by the globalization of production, in which different processes required for the production ofindividual goods and services are performed in different countries. An American automobile may be designed in Japan, assembled in Canada or Mexico, and consist of parts manufactured in Taiwan, Brazil, or just about anywhere. Isaiah Frank is William L Clayton professor ofinternational economics atthe Paul H. Nitze School ofAdvanced International Studies ofJohns Hopkins University. This article is adapted from a longer paper prepared by the author for the Committee for Economic Development 29 30 SAIS Review SUMMER-FALL 1994 Globalization, therefore, means increased trade in parts, components, and semifinished goods. It also implies an increase in intrafirm trade as single global companies move components and partially finished goods from their facilities in one country to those in anoüher. In short, the traditional horizontal pattern oftrade in final products is being overtaken by a form ofvertical trade in which countries specialize in different parts or stages ofthe production chain for individual products. This globalization of production is made possible by two developments: the rapid advances in transportation and communications technology, which have enabled managers to coordinate widely dispersed activities; and ¿He steady reduction oftrade barriers underthe aegis ofGATT, which has made possible the movement of components and semifinished goods across national frontiers with a minimum of penalties in the form of tariffs or other restrictions. Another major development in international trade is the rapid rise in trade in services. In addition to travel and transportation, it includes a wide range of other services, such as advertising, accounting, financial, insurance, architecture, construction and engineering, education, and medical services. Between 1986 and 1992 U.S. exports of services more man doubled to $179 billion, or 41 percent of the value of U.S. merchandise exports in 1992. In contrast to trade in goods, the service sector has been generating sizeable trade surpluses. The U.S. surplus in service trade in 1992 amounted to $56 billion, offsetting 58 percent of the U.S. merchandise trade deficit of $96 billion.1 Many types of service exports cannot be provided effectively through cross-border exports, but only through the establishment ofa local presence in the foreign countries in which the service is provided. In the service sector, therefore, trade policy and investment policy converge. What globalization implies, therefore, is die need to extend the purview of international negotiations from die liberalization of strictly border measures, such as tariffs and quotas, to ¿He coordination ofvarious areas ofdomestic policy that substantially affect the ability of firms to conduct their operations worldwide . For example, it is difficult to conceive ofa company producing parts ofa complex product in different countries ifeach country accorded widely different treatmentto intellectual property rights or mandated sharply divergenttechnical standards. Nor is it conceivable that international trade in a wide variety of specialized services could flourish if firms encountered exclusionary business practices abroad or if firms were subject to limitations on their right of U.S. Department of Commerce, Summary ofU.S. International Transactions, June 15, 1993. WHITHER U.S. TRADE POLICY 31 establishment or...

Introduction Heinrich Wohlmeyer 1. Preliminary issues and basic considerations Heinrich Wohlmeyer Section 1: The current performance of the world trade system and the World Trade Organisation 2. The present legal basis of the world trade system Richard Senti 3. The agreement on technical barriers to trade and basic aspects of the agreement on the application of sanitary and phytosanitary measures Katrin Forgo 4. The producer support estimate and the aggregate measure of support: suitable gauges for evaluating agricultural and trade policy? Heinrich Wohlmeyer Section 2: The theory of international trade 5. A few remarks on trade theory Franz Weiss 6. Free trade and its effects: some critical comments Sigrid Stagl Section 3: International trade: agricultural and environmental aspects 7. International trade on the rise: a brief introduction Sigrid Stagl and Tobias Reichert 8. Sustainability: a challenge for future economic and social policy Theodor Quendler and Bernd Schuh 9. Agriculture, trade and the environment Franz Weiss 10. The special case of agriculture Bernd Schuh 11. Reasons for measures aimed at the stabilisation of production and markets in the agricultural sector Theodor Quendler 12. Important factors influencing future scenarios regarding food supplies, world population and environment Theodor Quendler 13. Environmental issues and their significance for agriculture and the food industry Theodor Quendler and Tobias Reichert Section 4: Theoretical propositions for harmonising sustainable agriculture and free trade 14. Analysis of current developments in international agricultural trade Tobias Reichert 15. The World Trade Organisation and Agenda 2000 Heinrich Wohlmeyer 16. Solutions within the existing theoretical framework: environmental and trade policy measures Bernd Schuh 17. Ecological economics as a new integrative approach Sigrid Stagl 18. Conclusions and proposals for solutions Theodor Quendler, Franz Weiss and Heinrich Wohlmeyer 19. Final remarks Heinrich Wohlmeyer

Scholars, NGOs, and activists, especially from the Global South, have raised concerns that many sustainability-oriented regulations and standardization reflect neo-colonial dynamics (Dehbi & Martin-Ortega 2023: 930; Mason et al. 2023: 977f). Regulations like Germany’s Supply Chain Due Diligence Act, the EU Corporate Sustainability Due Diligence Directive (CSDDD), the EU Organic Regulation (EUOR), and the EU Deforestation Regulation (EUDR) are said to be Eurocentric policies that perpetuate historical power asymmetries, reinforce neo-colonial structures, and marginalize producers and stakeholders in the Global South. This policy brief builds on the findings of the Competence Center Fair Trade’s (CCFT) Policy Brief No. 1: “Neo-colonialism in International Trade?” to examine neo-colonial tendencies within Fair Trade. Policy Brief No. 1 explored the critiques above and assessed the Fair Trade Movement’s as well as the Fairtrade System’s role in addressing such dynamics. Building on that, Policy Brief No. 2 focuses on an exploration of neo-colonial aspects in Fair Trade – particularly the Fairtrade system – and gives recommendations.

Twenty years ago, Fair Trade started as an effort to enable smallholder producers from developing countries to successfully compete in international markets. Better access to market outlets and stable prices are considered key principles for sustainable poverty reduction and stakeholder participation based on 'trade, not aid'. While Fair Trade is primarily conceived as a trading partnership - based on dialogue, transparency and mutual respect - seeking greater equity in international trade, it relies on an organized social movement promoting standards for production practices and delivery procedures, working conditions and labour remuneration, environmental care and social policies in supply chains of certified tropical goods.Over the past two decades, sales of Fair Trade products have considerably increased. After the first shipments of coffee, the range of products has gradually broadened to include fruit (particularly bananas, pineapple and citrus), tea, cocoa, textiles, cosmetics and a whole series of other products. Global Fair Trade sales have steadily grown to approximately EUR 1.6 billion worldwide, covering almost 600 producer organizations in more than 55 developing countries that represent close to a million families of farmers and workers. In recent years, efforts have been made towards mainstreaming of Fair Trade involving large international companies and retail chains. While numerous case studies and descriptive overviews are available to illustrate the importance of Fair Trade for producers and their families in developing countries, little quantitative evidence has been presented to review the socio-economic impact of Fair Trade.This collection of articles provides the first balanced in-depth analysis of the real welfare impact of Fair Trade, paying attention to key dimensions of income, consumption, wealth, environment, empowerment and gender. The core articles are based on extensive field surveys in Peru, Costa Rica, Ecuador, Ghana, Kenya and Mexico, and provide valuable insights in the contributions and constraints for producers' involvement in Fair Trade. In addition, attention is paid to the broader implications for international trade regimes and the ethical perspectives on Fair Trade.

PurposeInitiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement within international trade. In the matter of fair trade coffee, this global social movement has transformed the traditional coffee trade structure of inequality and unfairness into a conglomerate of international institutions that embrace equity and inclusivity – a metamorphosis that can be attributed to NGOs’ institutional entrepreneurship.Design/methodology/approachIn this exploratory study, the authors examine the fair trade coffee industry and trace the actions of NGOs along with other stakeholders at the organizational field level, in moving toward an inclusive model of globalization.FindingsDeparting from exploitative globalization, fair trade practices advocate inclusive growth through the promotion and establishment of greater equity for all as well as higher environmental standards in global value chains.Research limitations/implicationsThis study contributes to nascent research on inclusive growth by analyzing how fair trade promotes inclusive growth and trade in GVCs. This study also contributes to research on institutional entrepreneurship by examining two enabling conditions – the shift in institutional logics and the peripheral social position of NGOs – that enabled NGOs to serve as institutional entrepreneurs in the initiation phase of institutional entrepreneurship.Practical implicationsPolicymakers may encourage collaboration between profit organizations and nonprofit organizations to provide entrepreneurial opportunities for trials, errors, and revisions. The evolution of fair trade coffee provides such an example.Social implicationsThe coevolution of NGOs and MNEs has made the globalization of fair trade practices possible. The collaboration between NGOs as institutional entrepreneurs (operating on the community logic) and MNEs as institutional followers (operating on the financial logic) support inclusive globalization and sustain fair trade practices.Originality/valueDrawing on the process model of institutional entrepreneurship, the authors seek to understand the role of NGOs as institutional entrepreneurs in the dynamics of initiating, diffusing and sustaining fair trade coffee practices.

Trade elasticities are often needed in applied country work for various purposes and this paper describes a method for estimating import demand and export supply elasticities withoutusing econometrics. The paper reports empirical estimates of these elasticities for a large number of low, middle, and upper income countries. One task for which trade elasticities are needed is in developing exchange rate assessments and this paper shows how the estimated elasticities can be used for this purpose.

Centering on questions of the potential optimality of some trade protection, these original contributions present research at the frontier of international trade trade policy. They expand test the new trade theory that has developed during the last decade, incorporating elements of industrial organization political economy into the study of trade structure the formation of trade policy.Essays in the first two parts take up trade policy, addressing issues such as the formation of trading blocks, strategic trade policy, the political economy of protection, growth-oriented trade policies, including empirical studies of the welfare effects of quality - upgrading voluntary export restrictions import quotas. Essays in the third part discuss various structural issues such as trade in services, intersectoral adjustments, the advantage of early entry.Contents: Policy: Theory. Is Bilateralism Bad? Paul R. Krugman. Strategic Policy Direct Foreign Investment: When Are Tariffs Quotas Equivalent? James A. Levinsohn. Making Altruism Pay in Auction Quotas, Kala Krishna. On the Ineffectiveness of Made-to-Measure Protectionist Programs, Aaron Tornell. Subsidies Price Competition, Peter Adverse Selection in Credit Markets Infant Industry Harry Flam and Robert W. Staiger. Protection, Politics, Market Structure, Arye L. Hillman. Growth Welfare in a Small Open Economy, Gene M. Grossman and Elhanan Helpman. Trade Policy: Evidence. Quality Upgrading Its Welfare Cost in U.S. Imports, 1969-74, Randi Boorstein and Robert C. Feenstra. Counting the Cost of Voluntary Export Restraints in the European Car Market, Alasdair Smith and Anthony J. Venables. Structural Issues. Services in International Trade, Wilfred J. Ethier and Henrik Horn. First-Mover Advantages, Blockaded Entry, the Economics of Uneven Development, James R. Markusen. Wage Sensitivity Rankings Temporal Convergence, Ronald W. Jones and Peter Neary.