Political Science 2211E Study Guide - Final Guide: International Trade Organization, Debt Crisis, General Agreement On Tariffs And Trade

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

History of trade from postwar protectionism to globalized production. Couldn"t create international trade organization at bretton woods due to protectionist attitudes, specifically from the americas. More gov intervention to protect domestic industry; tarrifs. General agreement on tariffs and trade (gatt) - 1947. First 6 rounds - slowly reduced tariffs across sectors. Round 7 - tokyo round - reduced non tariff barriers and tariffs. Go against market principals and buy domestic. Shift towards more manufacturing - thought canada was too resource dependent. Many coutnries had tarrifs but still atracted branch plants. Set up local factories to get around tariffs and sell to local market. Firms moved to developing countries in response to high tariffs, wages, taxes, and regulation. Despite tariffs, companies found it cheaper to locate to developing countries due to high factors such as wage and tax. Requires countries to adopt more free market policies in exchange for loans - third world debt crisis.