🌍 Every day, goods and services are traded between countries around the world.
📦 The trade network involves lengthy supply chains that source, assemble, package, and sell products globally.
❓ The complexity of the trade network raises the question of how it all makes sense.
🌍 Before the 19th century, most European countries prioritized self-sufficiency in a system called mercantilism.
🌐 Classical economists championed the idea of comparative advantage, where countries trade with one another to be more successful.
💼 Specialization allows countries to focus on making things they are good at and everyone benefits.
🌍 International trade allows countries to utilize their resources efficiently and create new products.
💰 Gross Domestic Product (GDP) is a key metric for measuring a country's economic power and productivity.
📊 Advancements in technology and travel have made remote markets more accessible, leading to increased international trade.
🌍 International trade connects producers and customers worldwide.
🌐 The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) have worked to lower trade barriers and establish rules for international trade.
💼 The WTO regulates trade in goods, services, and intellectual property and provides a platform for dispute resolution.
💡 The principle of comparative advantage determines a country's success in international trade.
⚙️ Inefficient businesses may be forced to close and result in job losses if they cannot compete in the global market.
🌍 International trade requires countries to focus on their comparative advantages.
🔒 The WTO attempts to address unfair trade practices, but faces challenges due to diverse perspectives and the need for consensus among member countries.
🤝 Bilateral and regional trade agreements offer alternative solutions to address specific trade needs and strategies.
💼 International trade has led to a tightly interconnected world economy, providing access to cheaper and better goods and services.
📈 World trade volume increased significantly from 1990 to 2015, creating millions of jobs and strengthening international connections.
🌍 While trade can create winners and losers, policymakers should assist those who are disadvantaged with support and training for new jobs.