Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
NS3040 Fall 2016 National Power and Foreign Trade Trade and National Power I • • • • Albert O. Hirschman, National Power and Foreign Trade German Trading Methods Under National Socialism Try to capture most of the gains from trade Principles of a power policy using foreign trade as its instrument • 1. Policies relying on the supply effect of foreign trade and trying to insure its working even in times of war • Concentrate imports on goods needed for the war machine • Accumulate large stocks of strategic materials • Redirect trade to neighboring political friendly countries 2 Trade and National Power II • 2. Policies relying on the influence effect of foreign trade • Policies designed to make it more difficult for the trading partner to dispense entirely with trade • Increase trading partners’ gain from trade • Develop exports in articles enjoying a monopolistic position in other countries and direct trade toward them • Direct trade to poorer countries • Increase trading partners’ adjustment difficulties in case of stoppage of trade • Trade with countries with little mobility of resources • Induce a wide discrepancy between the pattern of production for exports and pattern of production for home consumption – Greece groundnuts 3 Trade and National Power III • Policies designed to make it difficult for the trading partners to shift trade to each other or to third countries • In general direct trade toward the small trading countries • With respect to the exports of the trading partners • Import products for which there is little demand in other countries – Brazil cotton • Drive prices of the export products of the trading partner above world prices • By fostering high cost production • With respect to the imports of trading partners • Export highly differentiated goods creating consumption and production habits -- spare part problem • Develop trade on a bilateral basis 4