1. INT 200: Global Capitalism and its Discontents
Emerging Markets

2. International Trade
The exchange of capital, goods, and services across international borders or territories
Free trade
a policy which allows traders to trade across national borders without interference from their respective governments
Trade Barriers
tariffs, import licenses, export licenses, import quotas, subsidies, voluntary export restraints, local content regulations, embargos
Bilateral Treaties
a trade treaty between two nations or two trading blocs

3. International Trade Regional Trade Agreements
ASEAN Free Trade Area (AFTA)
Asia-Pacific Trade Agreement (APTA)
Central American Integration System (SICA)
Central European Free Trade Agreement (CEFTA)
Common Market for Eastern and Southern Africa (COMESA)
G-3 Free Trade Agreement (G-3)
Greater Arab Free Trade Area (GAFTA)
Gulf Cooperation Council (GCC)
North American Free Trade Agreement (NAFTA)
Pacific accord
South Asia Free Trade Agreement (SAFTA)
Southern African Development Community (SADC)
Southern Common Market (MERCOSUR)
Trans-Pacific Strategic Economic Partnership (TPP)

4. International Trade World Trade Organization policies:
Non-Discrimination
same conditions with each WTO member + domestic and imported goods treated the same
Reciprocity
lower trade barriers in return for similar concessions
Binding and Enforceable Commitments
WTO dispute settlement procedures
Transparency
publish trade regulations
Safety valves
exceptions

5. International Trade Global North v. Global South Developed country:
High income per capita, high GDP per capita, high level of industrialization
Developing Country/ Emerging Market
North-South Divide / North-South Gap

6. International Trade
Developed Country, Developing Country, Underdeveloped Country
First World, Second World, Third World
The Global North: UN Security Council, the G8, the IMF, the WB

7. International Trade Pros of eliminating trade barriers
enhance consumer choice
increase global wealth
secure peaceful international relations
spread new technologies around the world
Cons of eliminating trade barriers
gap between rich and poor countries widening
growing indebtedness of the poor countries to the rich
global labor standards lowered
ecological degradation
Besides, rich countries still have trade barriers
The Doha round of WTO trade negotiations

8. International Trade “Myths” of Globalization and International Trade
downward pressure on wages: main factor is technology
race to the bottom: TNCs pay workers more than national corporations
globalization irreversible: 90 years was lost by WWI, the GD, WWII; 9/11 and the 2008 financial crisis showed it can be slowed down
The shrinking state: the government may have new roles but it will not disappear
Emerging markets:
country that has some characteristics of a developed market, but does not meet standards to be a developed market (formerly, Less Developed Countries)
BRICS is the acronym for an association of five major emerging markets: Brazil, Russia, India, China and South Africa

9. China

10. China People’s Republic of China under Mao Zedong
Great Leap Forward ( )
The Cultural Revolution ( )
Reform of the Economic System (1978 – 1982)
Deng Xiaoping
increased the autonomy of enterprise managers, reduced emphasis on planned quotas
individual enterprise allowed
foreign-trade procedures eased
Reform and Opening (1982 – present)
commune structure dismantled
flexibility, autonomy, and market involvement improved
more restrictions on trade loosened
private entrepreneurship and freemarket activities legalized
private property rights

11. China Consequences: 2011 2nd largest economy, passing Japan
China should overtake the US to become the largest economy in the world by 2020, India taking second by 2030, moving the USA to third, with Brazil fourth
$2.5 trillion ($US) in currency reserves
$1.16 trillion of US debt
highest foreign exchange reserve $ trillion

12. Emerging Market TNCs
Traditionally, the vast majority of MNCs and TNCs that operate across borders have originated from developed countries such as the United States (US), Japan and members of the European Union (EU)