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Managing Trade Relations in the New World Economy

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The global economy is in the midst of upheaval and radical change. In the wake of the Soviet collapse and a shift in emphasis from the Atlantic to the Pacific, a new balance of power is emerging. Managing Trade Relation in the New War Economy analyses the impact of this development for international trade. Thomas Andersson explores how the East Asian economies have advanced in manufactured exports while the Western economies have accrued major current account deficits. He identifies the key factors in East Asian success as human capital, the application of new technologies and foreign investment. The experience of Japan and the East Asian NIEs is contrasted with that of North America and Western Europe. The US has lost its economic hegemony and become preoccupied with domestic problems. The European economies have had similar difficulties in meeting the East Asian challenge and are now struggling with their own restructuring. Will the multilateral trading system survive? Or will conflicts result in 'trade wars'? Thomas Andersson argues that the shaping of international economic relations may depend on the external policies of the European Community. He stresses the need for an agenda of 'openness', sharing the mutual benefits of trade with East Asia and with the world at large. Hide synopsis

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