1 Trade and Trade Issues 1
2 The Theoretical and Historical Origins of Trade Issues 31
3 The Politics of Protectionism 63
4 The International Politics of Trade 82
5 Neomercantilism and Bilateral Trade Issues 112
6 Regional Integration 143
7 Globalization and Outward-Oriented Development 178
8 Looking Ahead 212
1 Trade and Trade Issues 1
The Themes of the Book, 1
The Importance of Trade, 3
Concerns about the Trade Balance, 6
Policy Alternatives, 10
Free Trade and the Search for Competitiveness, 10
Export Promotion and Industrial Policy, 13
Forms of Import Restrictions, 15
International Cooperation to Stimulate Trade, 17
The Dilemmas of International Trade, 19
The Distributional Dilemma, 20
The Values Dilemma, 21
The State Goals Dilemma, 24
Choices for the Individual, 26
Conclusion: Choosing a Trade Policy, 28
2 The Theoretical and Historical Origins
of Trade Issues 31
Liberalism and Mercantilism, 31
Mercantilist Trade Policy, 33
The Corn Laws, 36
The Roots of Mercantilism, 41
The Demise of Mercantilism and the Birth of Liberalism, 45
The Rise of the Market, 45
The Advent of Free Trade Theory, 50
The Political Conflict over the Corn Laws, 56
Conclusion: The Triumph of Free Trade, 62
3 The Politics of Protectionism 63
Cycles of Global Mercantilism and Liberalism, 63
The Reaction to Laissez-faire, 65
The Rise of the Working Class
and Political Democracy, 67
Modern Elaborations of Liberal Trade Theory, 70
The Distributional Dilemma: The Impact of Trade on Class, 72
The Distributional Politics of Trade Policy, 73
The Effects of Market Dominance and Decline, 76
Trade and the Great Depression, 78
Conclusion: The Sources of Policy Cycles, 81
4 The International Politics of Trade 82
The Origins of Bretton Woods, 82
Hegemonic Stability Theory and American Global Leadership, 84
Liberal Interdependence and Peace, 86
The Ideals and Institutions of the Bretton Woods System, 88
The Principles of GATT/WTO, 89
The Financial Institutions of the Bretton Woods System, 94
The Uruguay Round of GATT, 100
The World Trade Organization, 104
Conclusion: Trade Dilemmas, International
Institutions and the "Battle of Seattle", 108
5 Neomercantilism and Bilateral Trade Issues 112
U.S.-Japanese Trade Tensions, 112
The Effects of International Trade on the State, 116
Differences in Trade Policies, 119
Japanese Trade Policy, 120
Strategic Trade Theory and Policy, 125
The Different Roots of American and Japanese Trade Policy, 129
Contemporary American Trade Policy, 132
Recent Trade Disputes, 136
Conclusion: The Future of American-Japanese Relations, 141
6 Regional Integration 143
The Evolution of the European Union, 143
Integration: Liberal on the Inside and Mercantilist on the Outside, 145
The Mercantilist Roots of the EU, 147
The Liberal Roots of the EU, 148
The Political Roots of the EU, 149
The Dilemmas Posed by Exchange-Rate Policy, 154
The North American Free Trade Agreement, 159
Motivations for NAFTA, 161
The Dilemmas in NAFTA and the Political Response, 165
The Dilemma of National Sovereignty, 166
The Dilemma of Value Trade-offs and Environmental Politics, 168
The Distributional Dilemma and the Politics of Labor Issues, 169
The Impact of NAFTA and the Mexican Collapse, 173
Conclusion: Lessons from NAFTA, 176
7 Globalization and Outward-Oriented Development 178
Globalization, 179
Trade Options for Poor Countries, 184
Outward-Oriented Development, 188
The Dilemmas of Outward-Oriented Development, 192
The Coming Storm: Dilemmas Revealed, 196
The Asian Meltdown, 201
The Dangers of Deficits: Who's Next?, 209
8 Looking Ahead 212
Missions Reviewed, 212
Mercantilism and Liberalism: A Summary Perspective, 213
Future Challenges, 217
Conclusion: Individual Choices, 221
Discussion Questions 223
Notes 224
Suggested Readings 243
Glossary 246
About the Book and Author 254
Books in This Series 255
Index 256