research topics in foreign trade

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Trade and Commerce Research Resources

Below are links to databases and electronic resources that support the study of international trade and commerce and related areas of research.

MULTIDISCIPLINARY DATABASES

Databases that offer multidisciplinary coverage of trade and commerce literature from scholarly and non-scholarly sources.

• Credo Reference -- comprehensive collection of highly-specialized dictionaries, encyclopedias, and handbooks across all subject areas. Good place to go for succinct definitions, explanations, and analysis of concepts, theories, or topics.
• Google Scholar -- the scholarly part of the Google empire. To set up Google Scholar with access to full-text journals and databases, go here .
• JSTOR -- a multidisciplinary archive of scholarly journal articles covering most major disciplines in the social sciences and humanities. Useful for identifying historical research on a topic.
• Oxford Handbooks Online -- contains in-depth, high-level articles covering a variety of disciplines. Entries offer a thorough introduction to topics and a critical survey of the current state of scholarship, creating an original conception of the field and setting the agenda for new research.
• ProQuest Multiple -- comprehensive, multidisciplinary database of newspaper, magazine, and scholarly journal articles updated daily. Content is more focused and manageable in locating relevant research than Google Scholar .

SPECIALIZED RESEARCH RESOURCES

Key Databases

• ABI/Inform -- database that features access to full-text journals, dissertations, working papers, key business and economics magazines and trade journals as well as country-and industry-focused reports and downloadable data. Its international coverage gives researchers a complete picture of companies and business trends around the world. Covers research that examines the international trade and commerce.
• Columbia International Affairs Online [CIAO] -- provides the full text of a wide range of scholarship books, working papers from universities and research institutes, occasional papers series from NGOs, foundation-funded research projects, and proceedings from conferences.
• EconLit -- provides thorough coverage of a wide range of economics-related literature derived from journal articles, books, working papers, conference papers, and research reports. Coverage if from the 1880s to the present. This is an important source of research on economic issues related to international trade.
• Public Affairs Information Services [PAIS] -- indexes selective subjects and bibliographic access to periodicals, books, hearings, reports, gray literature, government publications, Internet resources, and other publications from 120 countries. Includes historical coverage from 1915 to the present.
• Worldwide Political Science Abstracts -- provides indexing of the international journal literature in political science and its complementary fields, including international relations, law, and public administration and policy. Over 1,700 titles are monitored for coverage and, of these, 67% are published outside of the United States.
• WTO Documents Online -- provides access to the official documentation of the World Trade Organization. The database contains over 140,000 documents in the three official languages from 1995 onwards and is updated daily. The application provides descriptive records for every document stored in the archive. It is possible to consult all of these documents online and also to download selected documents from the site. All WTO documents are posted in PDF and Microsoft Word format. A complete list of all WTO databases accessing official documents of the WTO's councils and committees is located HERE .

Related Research Resources

• Commentaries on World Trade Law Online -- an open access e-book from Brill Publishers, this is  a comprehensive, standard reference work on WTO Law.  The Commentaries  explain the provisions of the WTO Agreements article by article, setting out the interpretation of each article in the case law, in practice and in scholarly writing. The contents are extensively hyperlinked to source documents, cross-referenced and indexed.
• European Commission Trade -- web site with links to European Union trade negotiations and agreements, EU's trade agreement with the four founding Mercosur states [Argentina, Brazil, Paraguay, and Uruguay], EU's role in the World Trade Organization, EU negotiating texts proposals and the latest round reports published since October 2015 related to the EU’s trade agreements and ongoing trade negotiations, data on trade and jobs, and trade rules enforcement on both the EU export markets and on the EU market.
• Global Trade Alert -- provides timely information on state interventions taken since November 2008 that are likely to affect foreign commerce. It includes state interventions affecting trade in goods and services, foreign investment, and labor force migration. The site focuses on trade policy monitoring and, in particular, coverage of all types of trade-discriminatory and trade liberalizing measures.
• Index of Economic Freedom -- an annual guide published by The Heritage Foundation that uses analysis of 12 quantitative and qualitative factors, grouped into four broad categories of economic freedom: Rule of Law (property rights, government integrity, judicial effectiveness); Government Size (government spending, tax burden, fiscal health); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and, Open Markets (trade freedom, investment freedom, financial freedom). The Index currently ranks 186 countries.
• ITC Electronic Document Information System -- searchable repository for all documents filed in relation to an investigation conducted by the United States International Trade Commission. EDIS provides the capability to file documents for an investigation as well as search for documents which have already been submitted to the USITC.
• International Trade Commission -- an independent, nonpartisan, quasi-judicial federal agency that makes determinations in proceedings involving imports claimed to injure a domestic industry or violate U.S. intellectual property rights; provide independent analysis and information on tariffs, trade and competitiveness; and maintain the U.S. tariff schedule.
• International Trade Web Resources -- a comprehensive, searchable directory of online resources concerning international trade. The site contains more than 8,000 annotated and indexed links to international trade/import-export websites.
• HeinOnline Law Journal Library -- full text access to digitized content of more than 2,600 law and law-related periodicals that cover criminal justice, political science, technology, human rights, and more. Coverage for all journals is from first issue and volume through the current issue or volume for most titles.
• Mergent Intellect -- a web-based application that features an in-depth collection of worldwide business information. The database offers access to private and public U.S and international business data, industry news, facts and figures, executive contact information, the ability to access industry profiles and much more. Useful source for obtaining information about U.S and international companies involved in global trade.
• SICE: Foreign Trade Information System   -- supported by the Organization of American States, this site provides access to multilateral, free, partial preferential trade agreements, and customs unions [a trade bloc composed of a free trade area with a common external tariff]; trade policy developments and updates; national legislation, national authorities and contact points, and additional information on disciplines contained in trade agreements; and, comparative tables of trade agreements and bilateral investment treaties. 
• United Nations Commission on International Trade Law -- the core legal body of the United Nations system in the field of international trade law. Mission is to further the harmonization and modernization of the law of international trade by preparing and promoting the use and adoption of legislative and non-legislative instruments in a number of key areas of commercial law.
• United States Court of International Trade -- established under Article III of the Constitution, this court has nationwide jurisdiction over civil actions arising out of the customs and international trade laws of the United States. The court has exclusive subject matter jurisdiction of certain civil actions brought by the United States under the laws governing import transactions, as well as counterclaims, cross-claims, and third-party actions relating to actions pending in the court.

DATA AND STATISTICS--COMPREHENSIVE

• Google Dataset Search -- facilitates searching approximately 25 million datasets provided by government, public, and private groups. Users can filter results based on the type of data desired [e.g., images or text]. Data availability is based on the original source being formatted using schema.org standards, an open discovery standard for data on the web.
• National Statistical Offices -- a directory of country-specific statistical agencies maintained and updated by the United Nations Statistics Division. Also included is a list of countries and organizations which includes a brief history of the country's statistical system, legal basis, the statistical program and much more.
• UNData -- searchable statistical database provided by the United Nations Statistics Division that provides access to current statistics. The database covers a number of different areas such as employment, industry, and trade. A single interface facilitates the creation of customizable tables and the use of various filters and search options to sort and locate specific statistical information.

DATA AND STATISTICS--SPECIALIZED

• ASEANStatsDataPortal -- first launched in June 2018, this website functions as a repository for Association of Southeast Asian Nations statistical databases, including those related to trade and commerce. The Portal is currently in the public beta version, the data sources in this website are mostly from regularly updated data submitted by the ASEAN Member states, using the ASEAN Statistical Indicators.
• Design of Trade Agreements (DESTA) Database -- aims to systematically collect data on various types of preferential trade agreements. These may be customs unions, free trade agreements, or partial free trade agreements (economic integration agreements). DESTA works with a list of almost 790 agreements and includes coded design features for more than 620 agreements. These include fine-grained data with information on a large set ranging from market access commitments, flexibility instruments, enforcement tools, to non-trade issues for the time period between 1948 and 2016.
• Direction of Trade Statistics -- an International Monetary Fund database that presents the value of merchandise exports and imports disaggregated according to a country's primary trading partner. Area and global aggregates are included in the display of trade flows between major areas of the world. Reported data is supplemented by estimates whenever such data is not available or current. Imports are reported on a cost, insurance and freight basis and exports are reported on a free on board basis. The database covers all IMF member states, some non-member countries, the world, and major areas. Monthly and quarterly data are available starting in 1960; annual data are available beginning in 1947.
• FAO Detail Trade Matrix -- the trade database of the United Nations Food and Agriculture Organization that includes the following variables: export quantity, export value, import quantity and import value. The trade database provides data concerning all food and agricultural products imported/exported annually by all the countries in the world.
• Foreign Trade Statistics -- a U.S. Bureau of the Census statistics site that includes trade highlights, product trade data, country data, state export data, and an historical series. Coverage is from 1960 to the present. This is a good place locate detailed statistics on goods and estimates of services shipped from the United States to countries overseas.
• EuroStat -- official site of the the European Union that provides statistics at European level that enable comparisons between countries and regions. Eurostat's database is updated twice a day. Users can download individual datasets by extracting data directly from the database, by selecting our most popular tables from the homepage, by using our bulk download facility or via our web services. Trade data includes the value and quantity of goods traded between the EU Member States and goods traded by the EU Member States with non-EU countries, and, statistics on international trade in services that record services transactions between residents and non-residents.
• Information System on Integration and Trade [INt rade] -- produced by the Inter-American Development Bank, this site contains several databases that includes in-depth data on the bilateral trade of countries in Latin America and the Caribbean, both at the aggregate level and by product up to the 6 digit level of the Harmonized System; annual and quarterly bilateral trade flows in value and volume at the tariff-line level, for each country of the Americas, including transport costs, insurance fees, and duties are available for selected countries; a comprehensive set of indicators defined to assess the trade performance and analyze the trade policies of the countries of the region; and a collection of statistics and indicators for each IDB borrowing member country, providing an overview of its trade performance and trade policies.
• International Trade and Balance of Payments Statistics Portal   -- provides access to four areas of data: international merchandise trade, international trade in services, balance of payments, and trade by enterprise characteristics. Maintained by the OECD International Trade Statistics Programme, the site's mission is to compile core series on international merchandise trade that are comparable between countries, to reconcile and resolve trade asymmetries at the national level between declaring and by partner countries, and to be directly involved in better understanding and measuring globalization using international trade statistics as a core input.
• International Trade by Commodity Statistics -- a database of the OECD that includes detailed data from 1961 for imports and exports by commodity in quantity and value between OECD countries and 264 different partner countries. Products are classified according to the Standard International Trade Classification system and Harmonized System. Coverage from 2010 to the present.
• Maritime Transport Costs -- a database of statistics from the OECD used in conjunction with the paper Clarifying Trade Costs in Maritime Transport and which contains data from 1991 to the most recent available year of bilateral maritime transport costs. Transport costs are available for 43 importing countries (including EU15 countries as a custom union) from 218 countries of origin at the detailed commodity (6 digit) level of the 1988 Harmonized System. Data is available on transport costs of commodities in agriculture, crude oil, manufacturing, and raw materials.
• Trade Map -- provides in the form of tables, graphs and maps, indicators on export performance, international demand, alternative markets and competitive markets, as well as a directory of importing and exporting companies. The database covers 220 countries and territories and 5300 products of the Harmonized System. The monthly, quarterly, and yearly trade flows are available from the most aggregated level to the tariff line level.
• UN Comtrade   -- open access database providing detailed global trade data. S  erves is a repository of official trade statistics and relevant analytical tables and  contains annual trade statistics starting from 1962 and monthly trade statistics since 2010. The database also includes United Nations Trade Statistics and International Merchandise Trade Statistics by nation. An essential source of global trade data.
• UNCTADstat -- a product of the United Nations Conference on Trade and Development, this site provides access to comprehensive statistical time series and indicators essential for the analysis of world trade, development, and interrelated issues in the areas of finance, technology, investment and durable development. The statistical series are regularly updated and classified into easy-to-navigate themes. UNCTADstat also offers ready-to-use analytical groupings, with coverage for countries and products with a particular focus on developing and transition economies.
• WITS TradeStat Database -- developed by the World Bank in collaboration with other NGOs, this database provides the latest international merchandise and commercial services trade data and overview of country and region's imports and exports, tariff and non-tariff measures. View international trade statistics by country or region to obtain country or region's overall exports, imports and tariffs; details of exports and imports with various partner countries along with partner share and Most Favored Nation and Effective Applied Tariff tariffs imposed; details on various products exported and imported globally and with individual partner countries; and. trade indicators like number of export and import partners, trade as percentage of GDP, services exports and imports, taxes on exports, and many more indicators.
• World Bank Services Trade Restrictions Database -- aims to facilitate dialog about, and analysis of, services trade policies. The database provides comparable information on services trade policy measures for 103 countries, five sectors (telecommunications, finance, transportation, retail and professional services) and key modes of delivery.
• World Integrated Trade Solution -- provides access to international merchandise trade, tariff, and non-tariff measures data. Browse the Country profile section to obtain countries exports, imports and tariff statistics along with relevant development data. In addition, WITS provides built-in analytical tools that help assess the impact of tariff cuts. Use the Trade Outcomes module to assess competitiveness of countries by calculating and visualizing indicators. Requires registration and log in to WITS to perform custom analysis, using standard and derived product classifications. System is created and maintained by the World Bank in collaboration with the United Nations Conference on Trade and Development.
• WTO Data Portal -- contains statistical indicators related to WTO issues. Available time series cover merchandise trade and trade in services statistics, market access indicators (bound, applied, and preferential tariffs), non-tariff information, and other key indicators. Data retrieval functionalities include data selection, display and export, including available metadata. Maps and other graphical representations of selected data are also available.

Descriptions of resources are adapted or quoted from vendor websites

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257 Trade Essay Topics for Students & Trade Project Topics

🏆 best essay topics on trade, 🔎 easy trade research paper topics, 👍 good trade research topics & essay examples, 🌶️ hot trade ideas to write about, 🎓 most interesting trade research titles, 💡 simple trade essay ideas, ❓ trade research questions.

• The Effects of Globalization to Employment and International Trade
• Globalization Impacts on Trade and Employment
• Apple Inc.’s Globalization Strategy and International Trade
• Governmental Role in Influencing International Trade
• Example of Successful Trading Company: Walmart, INC.
• Transatlantic Slave Trade and Its Effects
• Costs Involved in Warehousing, Impacts and Their Trade-offs in the Aviation
• World Trade Organization’s History, Achievements, and Challenges The World Trade Organization (WTO) is the global international organization that regulates trade between nations; that was established in 1995 and consists of 164 members.
• The Importance of International Trade Thanks to international trade, the country’s domestic economy can achieve a more efficient allocation of resources and a high level of well-being of the population.
• Fair Trade: Japan – Taxes on Alcoholic Beverages The WTO indicted Japan for what it described as a violation of the internal taxation and regulations as stipulated in the General Agreement on Tariff and Trade 1994.
• International Trade Payment Forms To succeed in international markets and gain sales against international competitors, exporters need to give clients attractive terms of payment supported by viable forms.
• Comparative Advantage and Free Trade Despite its attractive formulation, comparative advantage theory has several pitfalls and is rarely manifested in real-life situations due to trade restriction policies.
• Triangular Trade, Its Legs and Mechanism Triangular trade consisted of three parties, namely Africa, England, and the New World. This essay will discuss the development of transatlantic trade.
• Christopher Columbus: Voyage to Asia’s Discover Trade Routes Christopher Columbus wants to attempt to find new trade routes to Asia by sailing westward. This desire is motivated by dangerous waters in the East, and high cost of shipping.
• Main Reasons for Trade Between Nations The developed shipping industry and the availability of resources, including land, labor, and capital, in different countries, promote international trade.
• Trans-Pacific Regional Trade Agreement (CPTPP) This paper will present a discussion of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Agreement.
• Sony Corporation International Trade Strategy Analysis Sony’s current objective and strategy are focused on getting closer to people, which means that the company is shifting its vector of development on creating social value
• Globalization Impact on Trade and Employment One of the notable effects of globalization is heightened trade liberalization and opening up of global labor markets.
• Electric Cars and Trade Paradigm Global businesses and working environments are complex and require an in-depth assessment of issues for proper management.
• Importance of the Maritime Trade The Maritime system has both economic and social importance to the U.S. and North America, this is because ships form the primary mode of transport used for international trade.
• Impact of International Trade on Emerging Economies Discussing the impact on international trade of emerging economies like those of Eastern Europe, India, and China, what can we expect from them in the next 20–50 years.
• International Trade and Trade Policies Trade policies were initially done away with but the globalization has now begun to haunt all world governments.
• Cultural Differences in Business & Trade This paper reports on cultural differences among people and determine their impact on trade. Some of the differences are pretty obvious, for example, a language.
• China’s Trade Policy for the Global Economy The paper seeks to prove that China presents an outstanding example of rapid economic growth and has affected the development of the global economy significantly.
• Fair Enough? Big Business Embraces Fair Trade In fair trade, product manufacturers and consumers are responsible for growers in the creation of their possibility to sell products for a reasonable price.
• Consumer Law: Trade Practises Act The report outlines section 52 of the Trade Practises Act, which provides for the measures companies should consider before introducing new products to the market.
• International Trade Simulation and Report Comparative advantage is done so as to have to have the trades and specialization determined. These theories are for international trade concepts.
• Virtual Water Trade and Savings in Agriculture This essay discusses the savings associated with virtual water trade in agriculture and touches on the effects of a shift to local agricultural production on global water savings.
• Free Trade as a New Phenomenon in International Trade The free trade concept was introduced in “Theory of Comparative Advantage” by David Ricardo, and is one of the new phenomena in the international trade organization.
• Stockbroker E*TRADE: A Pioneer in Online Trading E*TRADE is among the most competitive and notable discount brokers. And this claim is based on its innovative trading resources and platforms.
• Free and Fair Trade: Vietnam-EU Partnership Free trade includes policies that help to reduce barriers that may serve as an impediment to international commerce.
• The Effects of Trade Unions on Alienation at Work The workers, by being aware of their trade union’s support, experience alienating feelings of stress, dissatisfaction, and meaninglessness at work.
• Nestlé’s Nescafe Partners’ Blend and Fair Trade Nestle UK is a leading manufacturer and an established value-adding company that provides a market opportunity for coffee farmers.
• International Monetary Fund, World Bank, and World Trade Organization This paper studies three international financial organizations: the International Monetary Fund, the World Bank, and the World Trade Organization.
• The China-United States Trade War The paper provides information on trade barriers between USA and China and their promotes free trade on the international scene.
• Employee Relations and Trade Unions Businesses now focus on a wider range of factors and place a greater emphasis on other factors such as employee appraisal and motivation.
• International Trade and Investment Countries may form an agreement framework between them in an attempt to expand trade between them and/or resolve underlying disputes.
• European Trade Goods for Native Americans The use of European trade goods changed Native Americans’ lives while providing them with more opportunities to succeed in supporting and protecting their families.
• Ethical Trade in the UK Garment Industry This research is relevant to understand in business ethics in the garment industry is genuine or a mere response to the pressure groups and the stakeholders.
• The Fair Trade Concept The very concept of fair trade implies that no overpricing should occur when carrying out essential financial transactions between the suppliers and the producing companies.
• Statistical Pairs Trading and Analyst Recommendation This paper focuses on the correlation between statistical pairs trading and analyst recommendations by employing the approach used by Gatev and colleagues.
• Sony Corporation and the New Trade Theory The New Trade theory is referred to as an economic theory developed by several economists in the 1970s. This theory has clearly been elucidated by the Sony corporation.
• Conscious Capitalism and Fair Trade The paper discusses the concept of conscious capitalism. It supports fair trade and is relevant to many types of businesses.
• Switzerland and the United Arab Emirates Trade Comparison The purpose of this paper is to explore the nature of the free trade agreement between the United Arab Emirates and Switzerland.
• Medical Devices Trade Agreements for Healthcare Medical devices are a critical aspect of healthcare delivery, becoming more prevalent for health management as technology becomes more complex and reliable.
• Sugar and Cotton History and Present Trade In this paper, we will compare sugar with another commodity – cotton, which had a similar early history to the emergence of sugar.
• Negotiating Globally: The U.S.-China Trade War Donald Trump added to the controversy of his term in the U.S. President’s office by starting a full-scale trade war against China.
• International Trade Philosophy Multinational companies which have a presence in foreign markets need to rely on a clear philosophy which can serve as the foundation and guidance for their operations abroad.
• The Russian invasion of Ukraine and Its Impact on International Trade The Russian invasion of Ukraine has caused enormous human misery, but it has also harmed international trade, which will disproportionately affect low-income nations.
• Aspects of International Trade The focus of the paper is to compare and contrast the factor-proportions theories and country-specific theories that address the partners.
• History of the Indian Ocean Trade The Indian Ocean Trade took place between 1200 to 1500ce, and it made a great impact in the world due to the activities involved.
• The Global Marketing and Trade Environments Economic and trade environments are critical in understanding product performance. A significant marketing concern is reaching the right target audience.
• Trade in Singapore: Economic and Political Aspects Singapore is the ideal place for trade because of its geographic location, business environment and less burden imposed by the government.
• Garment Trading Company: Motivational Climate and Its Improvement Using well-elaborated methodology and up-to-date research of employees’ motivation, the survey is designed to determine the level of employees’ motivation in this company.
• Global Mind Commodities Trading Company’s Strategic Marketing The report analyzes the Asian sugar industry and performs a company analysis of Global Mind Commodities Trading Pte Ltd.
• The Impact of Globalization on Labor Market and Trade Globalization is the process that refers to the coming together of the international markets. This report examines the impacts of globalization on trade and employment.
• Canada’s International Trade Policy International trade strategies have changed for Canada. In fact, 2017 is proving to be the year that define the country’s international trade policy.
• Future Fabrication, International Trade, Transportation Nowadays, the development of air, rail, and road transport contributed to the development of the worldwide delivery of the products.
• Climate Change and International Trade The relationship between climate change and international trade has been on a great verge of developing a new critical issue. This was so evident at the Conference of Parties Climate Conference.
• A Trade Policy for Game Consoles in the US and Brazil Even though trade relations between Brazil and the United States are regulated and are among the most profitable for both countries, trade policy has specific nuances.
• Electric Cars and Trade Paradigm The paper discusses environmental sustainability. Using Tesla company electric vehicles is the best decision for tackling the climate change problem.
• Insider Trading – The Legal and Illegal The insider trading is illegal activity when non-public information is used to gain an advantage over other traders.
• Trade and Usage Control: Drug Enforcement Administration The paper looks into the history of the drug enforcement agency, the factors that led to its formation, its goals, and its comparison with the federal bureau of narcotics.
• International Trade Law: Cif Contract CIF contracts are one of the most popular trade agreements between a buyer and a seller in the sphere of international trade when sea carriage is used.
• Human Rights and International Trade Human rights in international trade precipitated the formation of the World Trade Organization (WTO) which caters to the welfare of the workers and other interest groups.
• Sugar Cane Plantation and Slave Trade in South America By 1652, the price of slaves had doubled, marked by increased demand for slave labor and increased price of sugar in the new world. The price of slaves was determined by health, age.
• World Trade Organization and North American Free Trade Agreements The world trade organization and North America free trade agreements are both international trade agreements with several similarities and differences.
• ASEAN Free Trade Area and Economic Development ASEAN Free Trade Agreement (AFTA) opened new opportunities for Eats Asian countries to stabilize their economies and improve financial performance of the region.
• Labour Rights in International Trade In international trade, there is the interaction of different countries whose labor rights might differ from generally accepted by international human labor rights bodies.
• International Trade Theory: Hill’s Book Summary This work summarizes Hill’s book about international theories and the benefits of international trade through the examination of the garment industry in Bangladesh.
• International Business and Free Trade Globalization is at the center stage but it is affected by international trade, and free trade. This paper looks into globalization, international trade, and free trade.
• American Cuban Conundrum: Trade Relations The United States of America and Cuba need to come up with strategic plans and actions are handled appropriately to resuming their trade relations.
• Fair Trade: Ethics in the UK Garment Industry This paper will aim at understanding the code of conduct that is voluntarily disclosed by the UK apparel companies.
• Free Trade Agreements Between Canada and Other Countries The connection between Canada and other countries has been ignored over the years, free trade agreements are necessary and should be pursued for various reasons.
• Market Revolution: Agriculture and Global Trade In the era of traders, the vast land area and rich natural resources created many economic opportunities. Most people lived in rural areas and were engaged in agriculture.
• The 1807 Bill and the Abolition of the Slave Trade The study of the problem of discrimination from a historical perspective allowed me to better understand its origin as it proposes to consider the debate regarding human rights.
• World Trade Agreements and Anti-Dumping Measures This paper considered the issue of the increasing influence of dumping practices. It is one of the ways of price discrimination.
• Trade and Supply Chain Improvement Initiatives The ability to operate supply chain (SC) and trade processes efficiently is inextricably connected to modern states’ economic success and status in the international market.
• African Kingdoms, Atlantic Slave Trade, and New World Slavery The connections between African kingdoms, the Atlantic slave trade, and the new world slavery are shown in this paper.
• Trade Policies in International Business The ideas of antidumping policies are seen in the article posted in The Economic Times about duties imposed by India on ursodiol.
• Boeing and Airbus: Trade Barriers and Government’s Role The case of Boeing and Airbus demonstrates the governmental impact that created confusion and depicts the effect of trade barriers.
• How Multinational Businesses Can Improve Their Trade Compliance Globalization is a wave informing and shaping the practices of many companies operating in different parts of the world.
• Aspects of the Trading Conditions of Online Brokers The paper aims to explore three collaborative offers from major online brokerage platforms from the perspective of the average investor.
• Trade Advantages within the Global Economy Kenya is an Eastern African country that is bordered by Ethiopia, South Sudan, Uganda, Somalia, Tanzania, and the Indian Ocean.
• Free Trade and Prosperity Based on the Ricardian Trade model, it is worth having free trade even if some people are losing. Free trade promotes access to lower-priced goods with higher quality. Although some people in the home country will experience losses, imports from countries like Mexico and China are cheap, and this helps…
• The North America Free Trade Agreement in News The North America Free Trade Agreement was a landmark trade deal between Canada, Mexico, and the United States that took effect in 1994.
• Supply Chain Management and Trading System This essay is largely devoted to the discussion of supply chain management and the contemporary trading system.
• Experiments in High-Frequency Trading High-frequency trading (HFT) is becoming increasingly popular with private businesses and traders. HFT allows traders to make transactions within fractions of seconds.
• Fair Trade and Its Benefits for Local Farmers Fair trade was introduced to support the work of local farmers, whose incomes depend not only on themselves but also on various factors such as drought, crop diseases, and others.
• The World Trade Organization’s Impact on Public Health The World Trade Organization is an integration organization established on 1 January 1995 to liberalize international trade and regulate its member states’ business.
• The US-China Trade War: Microeconomics Principles This paper uses the microeconomics principles to substantiate the impact of trade between China and the US, and the trade war on businesses and consumers of both countries.
• Japan-US International Trade Relationship Through the example of the Japan-US trade relationship, this paper will analyze the importance of a proper assessment of a nation’s and its partner’s economy.
• Why International Trading Is Beneficial The paper states that international trading is vital in overcoming the problems of limited natural resource production opportunities.
• Export and Import in World Economy and International Trade The paper aims to study two mechanisms, export and import, which function together and must be examined to learn more about the world economy and all international trade.
• Trade Between Europe and Other Countries The trade relationship between Europe and other countries is improving, however, there are cultural, political, governmental, and economic challenges.
• Globalization and Poverty: Trade Openness and Poverty Reduction in Nigeria Globalization can be defined as the process of interdependence on the global culture, economy, and population. It is brought about by cross-border trade.
• Fair Trade Joe: Business Opportunities Fair Trade Joe has multiple opportunities, such as using its customer-oriented strategy to develop relationships with its clients, grow retention, and build brand awareness.
• Trade Agreement Between Mexico and Brazil Using the example of an agreement concluded between Brazil and Mexico, it is worth considering the advantages and disadvantages of such actions.
• Brazil’s Aspirations to Join the World Trade Organization Brazil’s aspirations to join the World Trade Organization faced a certain resistance on behalf of the country’s left-wing politicians who feared it.
• Facilitating Trade and Securing Import & Export One of the European Government’s concerns is to facilitate trade while also securing import and export procedures.
• The US Trade Deficit as a Current News Issue The US trade deficit resulted from a rise in imports, probably caused by businesses’ replenishment of inventories depleted during the COVID-10 pandemic.
• Thailand: Culture, Tourism, International Trade This paper aims to research the country of Thailand: its population and society, the culture of Thailand, the country’s economy and international trade, and tourism in Thailand.
• Federal Trade Commission (FTC) The current paper presents two points why advertising should be controlled by the Federal Trade Commission (FTC).
• India’s International Trade Policy India partners with great countries that help promote trade. Trade between India and the EU has dramatically increased by 12.5%.
• The Impact of the COVID-19 Pandemic on the International Trading The coronavirus pandemic has created new tough barriers to globalization and trade: the shutdown of production and the borders of leading countries and economic groups.
• Fair Trade Organized Social Movements Fair trade is an organized social movement that advocates fair standards of international labor, environmental, and social regulation.
• Exploring the Global Economy: International Trade and Finance Global trade and finance is a framework based on efficiency and effectiveness through interconnectedness and specialization, which carries greater risks for all involved parties.
• Trade Peculiarities in Food and Agriculture Food trading is a peculiar area, as food is the basis for surviving the population. The one who controls food production and trading routes, also controls all populations.
• Pollution Rights Trading Will Effectively Control Environmental Problems The further use of the cap-and-trade system and its constant perfection can contribute to controlling the environmental issues related to harmful emissions.
• Negative Sentiments Against Trade and Globalization Although the authors’ views are robust and applicable to developed economies, rising negative sentiments against trade and globalization remain relevant in developing countries.
• Federal Trade Commission and Consumer Financial Protection Bureau The report investigates the role of the Federal Trade Commission and the Consumer Financial Protection Bureau in the economy of the country, their legal grounds, and leverages.
• Business Law: Trade Union This work assesses the chances of organizing a community of workers and shows how the state is trying to regulate it. Unionization is a vital part of the working process.
• Greece’s Trading Interaction Analysis Greece’s trading interaction analysis showed that Greece exports and imports goods and services, such as various equipment and specialized machines.
• The Spread of Islam With Trade and Geography Due to the research on Islam, scientists managed to preserve the scientific heritage of previous civilizations and develop new directions in science, culture, and art.
• European Slave Trade in Historical Documents The European Slave Trade was one of the three stages involved in the triangular transaction, otherwise known as the Trans-Atlantic trade.
• The UK Global Competitiveness in Trade After Brexit The long-term goal for UK in international trade is to be globally competitive. One major problem is the negative trend in trade deficit during the last decade with EU members.
• Discussion of International Trade The article says that international trade is one of the essential things in the world today because without its help slowed down the development of a person as such.
• The Current Trading Environment of Airbus This paper provides a brief company history, current situation overview, internal and external analysis, evaluates challenges, and identifies future directions.
• Effects of Latin America’s Trade with Developed Nations The essay examines the performance of Latin America in the world’s economy and investigates the decreasing terms of exchange despite the world’s growing economy.
• Researching of the Challenges of Free Trade In the world of serious business, along with opportunities for real economic growth, companies face the potential threat of financial and reputational collapse and decline
• Federal Trade Commission and Consumer Financial Protection Bureau The paper analyzes the two bodies established to promote consumer protection and eliminate inappropriate business practices.
• Multinational Business Finance and Currency Trade At the time of the recession, investments became more substantial and soon large amounts of money were put into the financial system.
• Choosing a Currency Trading Strategy: When Investments Start to Grow While trading currency does involve a specific element of unpredictability, it still follows common economic laws, and its processes can be traced easily.
• The European Trade Policy: Objectives and Benefits The European Trade Policy is the most powerful tool through which the European Union establishes fair trade practices.
• Trade Routes and Colonization of North America During the period, also known as the Age of Discovery or the Age of Exploration, many countries became involved in the process of searching for new trade routes.
• The Trade War Between the USA and China The most important geopolitical issue is the trade war between the USA and China. Its development affects every other country due to the two economies in the world.
• The History of the Slave Trade in America This paper aims at exploring the rise of the slave trade in America and its influence on American economic life.
• Sino-American Trade War and Its Impact The trade war between the US and China has negatively influenced the economic systems of both countries. There could be increased costs for customers in the US.
• Fire Cases of World Trade Center and Dupont Fires Fires are among the fatal tragedies that have befallen America since time immemorial. Fire tragedies continue to haunt people despite efforts made to fight fires.
• The Federal Trade Commission This paper presents that the funeral services industry is essential since it allows grieving people to bury their dead ones in style.
• Trade Issues and Patterns of Mexico The trade situation in Mexico can be evaluated ambiguously, as it has both positive and negative characteristics.
• Gender, Race, and Trade Unions It can be noted that there are particular strategies, which can be applied when gender or racial discrimination happens.
• The United Arab Emirates and International Trade The United Arab Emirates has become one of globalization’s most prominent economic success stories thanks to its diversified economy.
• The U.S. Trade Balance and China Trade War Challenges This paper describes the US trade balance in terms of its impact on the country’s economy, as well as in the context of the ongoing phenomenon of a trade war with China.
• Trade War Between the US and China The trade war between the US and China makes a negative impact on the economies of both countries, leading to a trade deficit and higher prices.
• International and Traditional Trading Theories A trade war is a situation in which countries seek to harm each other’s economies, retaliate against each other by imposing import restrictions and other methods.
• Productivity Trade-Offs in Organizations Productivity is calculated by combining the time used for creating something as well as materials to divide them later equally.
• Coronavirus-Related Free and Fair Trade Issue in News The paper discusses the article by Finbarr Bermingham and Wendy Wu on the delayed release of the intellectual property action plan.
• Petroleum Trading and Risk Management Petroleum and gas producers’ choice to hedge utilizing varieties of hedging activities needs to be executed based on individual cases.
• “Do Investors Trade Too Much?” by Odean The author assumes that this may have certain relation to the overall excessive trading volume which can often be observed on the world market.
• Multinational Corporations and Trade Unions Multinational corporations are the main subject of globalization in the modern world. Trade unions were concerned about the uncontrolled actions of such corporations.
• The Effects of Globalization on Trade Globalization entails incorporating national wealth through the trade of goods, investment, capital distribution, labor exchange, and technology use.
• Issues in Cryptocurrency Trading Ever since the success of Bitcoin, cryptocurrencies have been steadily growing in number as well as the volume of transactions that occur through them.
• Commodity Trading Advisor: Skills and Practice Analysis This paper has covered the legal matters that a Commodity Trading Advisor needs to deal with before practicing so as to avoid serious implications.
• The World Trade Organization: Purpose and Functions The World Trade Organization (WTO) is one the most vital parts of modern trade. It is an intergovernmental organization, regulating sales across the world.
• Long-Term Impacts of the Chinese-American Trade War The trade war between the United States and China is one of the main factors of instability in the global economy.
• Transatlantic Slave Trade: A Legacy That Lives On The Transatlantic slave trade that took place between the 16th and the 19th centuries removed Africans from their homelands and brought them to Americas against their will.
• Dying and Killing for Ivory: Africa, Asia, & the Global Ivory Trade Given the worldwide increase in crimes against wild flora and fauna, there is a need for closer cooperation between law enforcement agencies through the exchange of information.
• International Trade During COVID-19 This document provides an analysis of Canada’s politics in response to the outbreak of COVID-19. A review of this country as a fully-democratic state will be provided to introduce it.
• Investing in the Current Market of Trading Cards The current market of trading cards is experiencing a significant rise as the annual revenues of those collecting them increase.
• Present Day Resistance Historical Roots to the Trade Globalization The selfish character of economic integration is the primary historical basis for the resistance to globalization.
• What Is the North American Free Trade Agreement (NAFTA)? North American Free Trade Agreement (NAFTA) is a trade bloc formed in 1994 to enhance free trade between the United States, Canada, and Mexico.
• Long-Term Impacts of the Chinese-American Trade War and Globalization of the World Economy The globalization of the economy has become a consequence of the increasing embeddedness of national economies into the world economy.
• Trade Liberalization: Environmental Effects Trade liberalization presents major opportunities, especially to developing nations. New policies allow global trade to create and sustain global economic growth.
• Free Trade as a Fundamental Principle of Modern Globalization Free trade has become critical in the globalized world by expanding diversity of not just goods, but technology and workforce.
• Trade Agreements and the Healthcare Industry
• Fair Trade Concept Overview
• International Trade: Identifying Market Structure
• UK Interests in EU-India Free Trade Agreement
• The World of Trade in 1897 by Jules Ferry
• Atlantic Slave Trade and Its Effect on Africa and the Americas
• Applying International Trade Concepts Simulation and Economics
• International Trade: Term Definition
• World Trade Organization Definition and Tasks
• Trade in Environmental Goods and Economic Growth
• Trade Policy Dilemmas in Australia
• Rodamia: International Trade Simulation
• United States Trade Deficit Trends
• Developing States-World Trade Organization Conflict
• The Trans-Atlantic Slave Trade and Slavery Abolishment
• Trade Effect on Environmentalism and Poverty
• Investment Policies, Trade and Debt on India
• Protectionism or Free Trade as a Ways of Reversing Trade Deficit
• Trade Unions in France and Spain
• Employment Contract, Termination and Restraint to Trade
• Economic Development: International Trade Debate
• Fighters for the Abolition of the Slave Trade: Olaudah Equiano’s Characteristic
• World Trade Organisation in the Modern Global Economy
• International Trade Debate: Discussion of Nuances
• South Korea as a Country for US Investment and Trade
• Globalization, the Sex Trade and HIV-AIDS
• Information Systems in Aurora International Trading
• A Damned Piece of Rascality: The Business of Slave Trading in Southern Appalachia
• Encourage Fair Trade in Scotland
• Ancient Greek Colonization and Trade
• North American Free Trade Agreement and Employment
• Multi-Fibres Agreement and Free Trade in Textile Sector
• Have the Trade Policies of President Donald Trump Increased the Competitiveness of the USA?
• Bhutan’s Trade and Exchange Rate Policies
• Trade Wars: Who Can Stand the Pain the Longest – China or the USA?
• International Business: Sino-American Trade War
• The Impact of the U.S.-Mexican Trade War

✍️ Trade Essay Topics for College

• North American Free Trade Agreement
• HIV Transmission and Syringe Trade-In System
• Trading Instructions: Primary Source Analysis
• Global Trade Slowdown and Protectionism
• International Trade Benefits for the US Economy
• Slave Trade and Workforce in American History
• The Demographic Changes of American Trade Unions
• Global Political Economy: World Trade Organization, World Bank, and European Union
• The World Trade Organization’s Controversies
• Nicaragua’s Overreliance on International Trade
• Modes of International Trade Payment
• China Trade Barriers and Their Economic Effects
• The Political Economy of International Trade
• International Business and Free Trade Agreement
• North American Free Trade Agreement’s Pros & Cons
• Water Savings and Virtual Trade in Agriculture
• Using Free and Secure Trade to Smuggle Drugs
• Virtual Water Trade of Agricultural Products
• Trade Openness and Economic Growth’s Relationship
• The United Kingdom’s Fair Trade Initiatives
• World Trade Center Disaster and Anti-Terrorism
• Foreign Investment and Trade Policy in the US
• Virtual Water Savings and Trade in Agriculture
• Insider Trading Situation in 2017
• Economics: Carbon Tax vs. Cap-and-Trade System
• Carbon Tax and Cap-and-Trade System
• Gulf States, International Trade and Security
• Economic Interdependence Theory and Future of Trade
• China-Africa Trade and Political Relations
• United Kingdom Trade Union Congress Mobilization
• Trade Mark Protection in the United States Law
• Tradable Permit Schemes: Cap and Trade
• New France’s and the North American’ Fur Trade
• Transatlantic Slave Trade: Development and Effects
• The Theme of Trade in the Art
• Denmark’s Savings and Trade Balance
• World Trade Organization and Doha Declaration
• Gardena Flowers and Plants Trading Company Analysis
• Defending Slavery: Termination of Slavery and Slave Trade in South America
• US International Trade and Economic Nationalism
• What Are the Differences Between American and European Trade Unions?
• What Is the Importance of a Surplus Trade Balance?
• Does the World Trade Organization Hinder Economic Growth in Developing Countries?
• Does Trade With Low-Wage Countries Cause a Trade Deficit in the High-Wage Country?
• What Are the Differences Between Free Trade and Protectionism?
• Are Trade Unions Necessary in the Present Context?
• What Are International Trade Law Limitations and Benefits?
• What Are the Gains From Trade and the Implications for Trade Negotiations?
• Why the Theory of Comparative Advantage Is the Basis for International Trade?
• Does Trade With Low-Wage Countries Hurt American Workers?
• What Are the Objectives of Trade Union?
• Why Does Canada Have Inter-Provincial Trade Issues?
• Why Is the Usa So Rich if Its Trade Balance Is Negative?
• Why Was France Warning the UK for Bitter Trade Negotiations?
• Why Does the UK Have Such Restrictive Trade Union Laws?
• Why Doesn’t the Us or UK Devalue Its Currency to Solve Its Trade Balance Problems?
• What Is the Difference Between Trade Associations and Labor Unions?
• What Is the Significance of GATT in International Trade Law?
• What Countries Have Lax Insider Trade Law Enforcement?
• Do International Trade Laws Apply in France?
• Why Does the Trade Union Movement, Overall, in Australia, Support the Labor Party?
• Why Many LEDCs Struggle to Increase Their Balance of Trade?
• Was Michel Barnier the Wrong Man to Handle the EU’s Trade Negotiations With the UK?
• Why Does the Democratic Party Wish for Trump to Fail in Trade Issues?
• What Are the Trade Issues of China in the USA Market?

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StudyCorgi . 2021. "257 Trade Essay Topics for Students & Trade Project Topics." September 9, 2021. https://studycorgi.com/ideas/trade-essay-topics/.

These essay examples and topics on Trade were carefully selected by the StudyCorgi editorial team. They meet our highest standards in terms of grammar, punctuation, style, and fact accuracy. Please ensure you properly reference the materials if you’re using them to write your assignment.

This essay topic collection was updated on January 9, 2024 .

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• CBO Reports on International Trade and Finance Topcs Congressional Budget Office reports on trade topics.
• Encyclopedia of Business in Today's World Overviews of International Trade topics by business professors.
• IMF Publications by Subject Lists publications by the International Monetary Fund. Some are free online and some are not free.
• The New Palgrave Dictionary of Economics Signed articles provide concise explanations of terms and theories. Bibliographies at the end of entries provide recommended reading on the topic.
• Peterson Institute for International Economics Browse working papers on economic policy.
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International trade and integration: The latest research

Alejandro forero, ana fernandes.

What’s the latest research in international trade and integration? Researchers from the World Bank, the IMF and the WTO recently gathered for a one-day workshop to present their latest research on the topic. The papers presented addressed topical questions in areas as diverse as the links between trade, wage inequality and the poor, global value chains, non-tariff measures, preferential trade agreements, FDI restrictions, and migration. We provide a quick roundup on the papers presented during the workshop.

On trade, wage inequality, labor mobility and the poor Countries often protect their poor by raising tariffs on the goods they produce. But if all countries apply pro-poor trade policies, a coordination problem arises since the poor are employed in similar sectors across countries.  The result is that the goods the poor produce face higher barriers in destination markets. Roberta Piermartini from the WTO shows that indeed tariffs faced by Indian exports abroad are higher for goods produced by individuals in lower-income groups and by women. Removing this unbalanced access to international markets may contribute to a more even distribution of the gains from trade.   Empirical evidence shows that after countries liberalize trade, wage inequality increases gradually for several years but then stops increasing and can even decrease. The model by Matthieu Bellon from the IMF explains this evidence emphasizing the dynamics of worker reallocation between heterogeneous firms and workers in the presence of adjustment costs to labor.     Using a novel district-to-district migration dataset, Aaditya Mattoo from the World Bank studies the determinants of worker mobility across Indian districts. He provides evidence of invisible walls across state borders  explained by the existence of state-level entitlement schemes, ranging from access to subsidized goods through the public distribution system to the bias in favor of states’ own residents in access to tertiary education and public sector employment.   On Global Value Chains (GVCs)   Strong domestic linkages across firms reduce fragmentation costs but also create a lock-in situation in relationship-specific sectors. Therefore, domestic value chains (DVCs) can either be stepping stones or stumbling blocks for GVCs. Cosimo Beverelli from the WTO presents empirical evidence showing that GVCs have their foundations in DVCs, supporting the stepping stone hypothesis.   Real currency depreciations not only increase exports of domestic value-added (DVA) - a conventional result - but also increase imports of foreign value added (FVA) - a result contrasting with traditional trade theory, according to the study by Gee Hee Hong from the IMF.  These results support the idea that GVC-related exports and imports are complements in production.   On preferential trade agreements   The impact of trade agreements in existence until 1995 is revisited by Swarnali Hannan from the IMF who introduces synthetic control methods as a novel approach to establish causality. She finds substantial gains from trade agreements, with an average boost to exports among preferential partners of 80 percentage points over a decade.   Exploring the role of deep trade agreements, which go beyond tariff reduction to cover policy areas such as investment, competition policy, and intellectual property rights protection, Alen Mulabdic from the World Bank uses a new dataset on the depth and content of the agreements to show that deep trade agreements lead to more trade creation and less trade diversion than shallow trade agreements.   Below is a brief flavor of other interesting papers also presented at the workshop:

• Revisiting the trade and growth debate focusing on China as a source of supply and demand shocks, Jaebin Ahn from the IMF finds a positive impact of Chinese import penetration and export market access on sectoral total factor productivity growth in advanced economies. The recent trade slowdown could thus weigh significantly on the already weak productivity growth in advanced economies.
• Using a new methodology to estimate bilateral ad valorem equivalent (AVE) of non-tariff measures (NTMs), Hiau Looi Kee from the World Bank shows that products with higher AVEs exhibit larger discrepancies across reported import and export statistics for a given bilateral flow.  The evidence is consistent with the hypothesis that firms misdeclare product codes or country of origin to circumvent cumbersome and opaque NTMs.
• According to a unique disaggregated IMF dataset on global trade in services, presented by Saurabh Mishra from the IMF, service exports from developing countries have grown tenfold since 1990 - twice as fast as those from advanced economies.  Transport and travel have lost share in world services exports to intellectual property and financial services.
• The availability of factoring - an alternative finance instrument - is shown by Marc Auboin from the WTO to allow small firms in emerging economies to access international markets, in particular by being involved in global supply chains.
• Foreign acquisitions improve management practices – e.g., through an increase in the number of hierarchical layers and increased span of control among top managers. One reasons could be acquisition-induced reductions in communication costs within acquired firms in Portugal, according to the study by Paulo Bastos from the World Bank.
• Bilateral investment agreements can lower FDI restrictions but in practice several countries have lowered their FDI restrictions without such agreements while others retain high FDI restrictions with no interest in such agreements. The research by Mathilde Lebrand from the World Bank emphasizes the role of tax havens to which the profits of multinationals can be shifted as an important determinant of FDI restrictions.
• Aggregate trade responds sharply to spatial frictions, falling rapidly over short distances as distance to the destination increases, even within the European Single Market. The study by Shawn Tan from the World Bank shows that such sharp trade responses are explained by trade in intermediate inputs, as there is spatial clustering of firms connected by input-output linkages, who choose to co-locate to avoid trade costs.
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Australia news live: companies bidding for Victoria’s offshore wind zone get green tick from Bowen; NSW police investigate drive-by shooting

Officers were called to Merrylands, in western Sydney, overnight. Follow the today’s news live

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• 28m ago Treasurer Jim Chalmers flags foreign investment changes
• 41m ago Steps made towards Australia’s first offshore wind farm
• 1h ago Good morning
• 1h ago House prices rise for 15th month running
• 1h ago Welcome

‘This is genuinely a national crisis’: Treasurer ahead of national cabinet on violence against women

Ahead of today’s national cabinet aimed at addressing violence against women, Jim Chalmers was asked how much he as treasurer is willing to spend on this issue.

He told ABC RN:

I think our whole government recognises that we need to do better and we need to do more. This is genuinely a national crisis and women are not safe in our community. We’re very cognisant of that, and very focused on that … I think this is partly a story about government investment, but not solely a story about government investment. And if there are ways that we can provide more investment or invest differently in these really important services to keep women safe, then obviously that’s something that we’re prepared to consider and that’s one of the reasons why the leaders from around Australia gathering today.

He also spoke about the topic on ABC News Breakfast. He said changes to bail laws are “one of the things that needs to be considered” and also “having a look at the various legal arrangements to make sure that they’re up to scratch”.

Treasurer Jim Chalmers flags foreign investment changes

As we flagged earlier, the treasurer Jim Chalmers will today announce foreign investment changes, with approvals to be made quicker and greater scrutiny to be placed on potential risks.

You can read all the details on this from Peter Hannam below:

Speaking to ABC News Breakfast just earlier about the changes, Chalmers said it was about ensuring Australia has “the right kind of robust framework” to screen foreign investment proposals and “make sure they’re in our national interest”.

Right now, we treat investments from right around the world more or less the same. We want to streamline it for the less-risky investments so we can devote much more time and energy and resources to screening the sorts of investments that we’re seeing in critical industries – like critical minerals, critical infrastructure, critical data, and the like. This is all about strengthening the foreign investment framework to make sure that investment is in the national interest. We want to maximise the right kind of investment, but we want to minimise risk and that’s what these changes I’ll announce today are all about.

Steps made towards Australia’s first offshore wind farm

The development of an offshore wind farm zone off Victoria’s Gippsland coast appears a step closer after the Albanese government awarded feasibility licences to six companies.

The licences, awarded by the climate change and energy minister Chris Bowen , allows them to conduct environmental assessments and geotechnical surveys, and gain initial approvals to build turbines that, if delivered as proposed, could have a capacity of 25 gigawatts.

The successful developers are Star of the South , long considered a frontrunner to become Australia’s first offshore wind farm, High Sea Wind, Gippsland Skies, Blue Mackerel, Kut-Wut Brataualung and Ørsted Offshore Australia.

The Gippsland offshore wind zone has to-date not faced the criticism, some of it based on misinformation campaigns , that has been directed towards proposed zones in New South Wales’ Hunter and Illawarra regions.

In a speech to the Energy Users Association of Australia in Melbourne today, Bowen will say offshore wind energy was not about meeting 2030 emissions reduction and energy targets as the industry would take longer than that, it was “very much about planning for a reliable energy system years into the future”.

The International Energy Agency puts offshore wind in a category of its own as ‘variable baseload power’, with similar capacity factors as gas and coal-fired power plants. As well as jobs rich, offshore wind is energy rich. That’s why major Australian energy users – from Alcoa in Portland, to Bluescope in the Illawarra, to Tomago in the Hunter – say that offshore wind is vital to their energy future.

Salvos survey: vulnerable Australians facing frightening choices amid cost-of-living crisis

Vulnerable Australians are struggling to afford essentials, with many facing a choice between paying their grocery bill or their landlord, AAP reports.

One in four people have eaten expired or soiled food while about 5% have eaten from rubbish bins, according to a survey by the Salvation Army .

Among 1500 people who approached the charity for help, 45% had to choose between paying for housing or buying food, while 61% struggled to pay utility bills on time, more than six times the national average, the Salvation Army said.

Major Brendan Nottle said the number of people struggling in the community and the choices they faced were frightening:

Individuals and families shouldn’t have to make these sorts of decisions, like choosing whether to eat, pay rent or send your kids to the doctor.

One mother told the charity she was constantly borrowing money from friends, skipping meals so her kids could eat.

The survey highlighted the depths of Australia’s current cost of living crisis, the Salvation Army said.

Churches to front Yoorrook commission

Three of Australia’s most prominent Christian churches are to be grilled at a truth-telling inquiry as it focuses on land injustices against Aboriginal people, AAP reports.

Representatives from the Catholic, Anglican and Uniting churches are expected to face a public hearing at the Yoorrook Justice Commission in Melbourne today.

The inquiry has homed in on land injustice in its latest hearings.

Churches played a significant role in setting up Victorian missions and reserves where Aboriginal people were confined.

Some have acknowledged their ministries were built on stolen Aboriginal land, while churches were also behind the forcible removal of children in the stolen generations.

Children were subsequently placed in churches’ care.

Victorian premier Jacinta Allan was the latest witness to give evidence at the inquiry on Monday, revealing that she was prepared to make a formal apology to Aboriginal Victorians.

House prices rise for 15th month running

Australia has clocked its 15th month in a row of house price growth despite wobbly economic conditions, with prices gaining a further 0.6% in April, AAP reports.

Dwelling values were growing at the same pace in April as in both February and March, according to Corelogic ’s home value index.

The research director at the real estate data firm, Tim Lawless , said home values were still rising despite higher interest rates, low sentiment, worsening affordability and ongoing cost-of-living pressures.

Housing values are now up 11.1%, or about $78,000, since the trough in January last year. But the prospect of higher-for-longer interest rates, stubborn price pressures, worsening housing affordability and slowing economic activity could weigh on price growth.

Yet working in the other direction was a supply shortage of housing that “doesn’t look like it will change in the near future”, Corelogic found.

Perth recorded another robust 2% lift in home prices over the month, the fastest increase of any capital city.

The Western Australian capital, Adelaide and Brisbane have been stand-out performers of late, although the Queensland property market was showing signs of losing momentum.

Lawless said:

Affordability pressures may be impacting the pace of growth across the city, following a nearly $300,000 increase in values since the onset of Covid in March 2020, the largest dollar value increase of any capital.

The strongest growth was occurring in the lower range of the market in almost every capital city, with the exception of Darwin.

Similarly, growth in unit prices was typically outpacing house values.

Farrell hails trade progress with China

Trade minister Don Farrell has held a virtual meeting with his Chinese counterpart, and says it went well. He said in a statement that they had “welcomed progress” in bilateral trade:

Australian coal, cotton, copper ores and concentrates, timber logs, oaten hay, barley and most recently bottled wine, have returned to the Chinese market. Student and tourist numbers and official and business delegations are increasing. I reiterated our firm commitment to rules-based trade and I pressed for remaining trade impediments affecting our hard-hit live rock lobster industry, and red meat export establishments to be resolved as soon as possible.

Farrell said he looked forward to welcoming minister Wang to Australia soon.

Good morning and welcome to the daily news blog. I’m Martin Farrer and I’ll be bringing you some of the best overnight stories before Emily Wind gets into the hot seat.

Anthony Albanese has called for a debate on the blocking of misogynistic content online before a snap national cabinet called for today to focus on women’s safety. The federal government has signalled that strengthening violence prevention by countering online harms will be a priority at the meeting, called after a spate of violent attacks on women.

We have a special report today from the Great Barrier Reef where a summer of storm surges and cyclones has left the Unesco heritage site looking like a “graveyard”, according to scientists stunned by the latest bleaching event. Surveying an area of coral off Heron Island, one scientist estimates that “90% of branching corals are dead or dying”.

Foreign investment approvals will be made quicker but greater scrutiny will be placed on potential risks as Australia tries to balance economic and security interests, treasurer Jim Chalmers will say today . The Treasury will set a target to process half of foreign investment cases needing approval within 30 days after from next January, Chalmers will tell the Lowy Institute in Sydney. It will also seek more funds from abroad to support so-called build-to-rent housing ventures and the energy transition off fossil fuels as the government pursues its Future Made in Australia policy.

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• 01 Sep 2022
• What Do You Think?

Is It Time to Consider Lifting Tariffs on Chinese Imports?

Many of the tariffs levied by the Trump administration on Chinese goods remain in place. James Heskett weighs whether the US should prioritize renegotiating trade agreements with China, and what it would take to move on from the trade war. Open for comment; 0 Comments.

• 05 Jul 2022

Have We Seen the Peak of Just-in-Time Inventory Management?

Toyota and other companies have harnessed just-in-time inventory management to cut logistics costs and boost service. That is, until COVID-19 roiled global supply chains. Will we ever get back to the days of tighter inventory control? asks James Heskett. Open for comment; 0 Comments.

• 05 May 2020
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China Tariffs and Coronavirus a Double Hit to American Retailers

American retailers have yet to pass along higher prices caused by Chinese tariffs, but shrinking product demand caused by the coronavirus could change that, warns Alberto Cavallo. Open for comment; 0 Comments.

• 16 Apr 2020

Has COVID-19 Broken the Global Value Chain?

4Questions Companies and consumers depend on the global value chain to create and distribute products around the world. What happens when the chain breaks? Insights from Laura Alfaro and Ester Faia. Open for comment; 0 Comments.

• 17 Mar 2020
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Is There a Winner in Huawei’s Digital Cold War with the US?

Bill Kirby discusses his case study of China-based Huawei’s growth and ultimate confrontation with the United States government, and China's response to the coronavirus. Open for comment; 0 Comments.

• 17 Feb 2020
• Working Paper Summaries

The Impact of Technology and Trade on Migration: Evidence from the US

Labor mobility can re-equilibrate local labor markets after an economic shock. Both robot adoption and Chinese import competition between 1990 and 2015 caused large declines in manufacturing employment across US local labor markets (commuting zones, CZs). However, only robots were associated with a decline in CZ population, which resulted from reduced in-migration rather than by increased out-migration.

• 12 Nov 2019

Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy

Collecting and analyzing microdata on prices and the reaction of importers, retailers, and exporters to US trade policy since 2018, this study finds most of the tariffs’ incidence rests with the US firms.

• 26 Jun 2019

Why the US-China Tariff Standoff Hurts American Companies More

US exporters have been slashing the prices of goods they sell to China to offset higher trade costs, but Chinese exporters are passing those costs to American companies, research by Alberto F. Cavallo says. Open for comment; 0 Comments.

• 11 Dec 2018

Free Trade Needs Nurturing—and Other Lessons from History

Global free trade is not the natural order of things, so it needs to be carefully tended to and maintained. Sophus Reinert and Dante Roscini discuss trade over time and what history teaches. Open for comment; 0 Comments.

• 01 Aug 2018

Are Free Trade and Free Markets Quaint Ideas From the Past?

SUMMING UP: Free trade and free markets are great concepts but are often corrupted by politics, globalization, and the relative power of consumers and workers, our readers suggest. Open for comment; 0 Comments.

• 30 May 2018

Should Intellectual Property be Protected in International Trade?

SUMMING UP To do business in China, American firms often lose some of their intellectual property. James Heskett's readers think that price is too high. Open for comment; 0 Comments.

• 12 Apr 2018

Op-Ed: The Trouble with Tariffs

The world's economies are interconnected by globalization, which makes threats of tariff wars doubly dangerous, says Willy Shih. Open for comment; 0 Comments.

• 02 Mar 2018

Op-Ed: Trump’s Tariffs Could Harm Allies as Much as Opponents

President Trump's duties on steel and aluminum could produce immediate political gain but long-term economic pain for some American industries and global allies, says Dante Roscini. Open for comment; 0 Comments.

• 23 Feb 2018

Trade Creditors' Information Advantage

Trade credit represents about a quarter of the liabilities of US firms. There are several theories explaining this fact. This study reexamines whether suppliers hold private information about their trade partners, by analyzing their behavior in bankruptcy.

• 02 Mar 2017

Is China About to Overtake the US for World Trade Leadership?

SUMMING UP. It's better for the United States if China is an economic ally rather than a competitor for world trade leadership, James Heskett's readers conclude. Open for comment; 0 Comments.

• 24 Jun 2016

Why Brexit is a Big Deal

The consequences of Britain's vote to leave the European Union will be far-reaching. John Quelch shares his thoughts on the ramifications of Brexit. Open for comment; 0 Comments.

• 22 Feb 2016

The ‘Mother of Fair Trade’ was an Unabashed Price Protectionist

Historian Laura Phillips Sawyer unearths the story of little-known drug store owner Edna Gleason who, in a man’s world, helped fire a progressive movement to protect small-business owners from price-slashing chains. Open for comment; 0 Comments.

• 27 Oct 2014

The Coffee Economy That Bloomed Out of Nowhere

How did a world-class coffee region arise out of a land once decimated by smallpox and measles? Casey Lurtz discusses the rise of a coffee economy in a desolate region of Mexico. Open for comment; 0 Comments.

• 16 Dec 2009

The End of Chimerica

Economic historians Niall Ferguson and Moritz Schularick of Freie Universität Berlin consider the problem of global imbalances and try to set events in a longer-term perspective. First published in 2009. Closed for comment; 0 Comments.

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U.S.-Germany Relationship Remains Solid, but Underlying Policy Differences Begin to Show

85% of Americans and 77% of Germans see the relationship between their countries as good. A majority of Americans see Germany as a partner on key issues, including dealing with China and the war in Ukraine. But Germans are less confident about partnering with the United States on China policy.

Comparing Views of the U.S. and China in 24 Countries

We examine how the U.S. and China stack up to one another on more than 10 measures of international public opinion, spanning from confidence in their leaders to views of their universities and technological achievements.

Americans name China as the country posing the greatest threat to the U.S.

In an open-ended question allowing Americans to name which country they see as the greatest threat to the U.S., 50% name China.

Americans see U.S. aid to developing countries as more beneficial than Chinese assistance

More than a third of Americans (37%) say foreign aid from the United States and China both benefits and harms developing countries.

China’s Approach to Foreign Policy Gets Largely Negative Reviews in 24-Country Survey

A median of 76% of adults in the 24 countries surveyed say China does not take into account the interests of other countries in its foreign policy. Majorities in most countries also say China does not contribute to global peace and stability.

Economic ratings are poor – and getting worse – in most countries surveyed

Majorities of adults in 18 of 24 countries surveyed this spring rate their nation’s economic situation poorly.

Methodology

Results presented in this data essay are drawn from nationally representative surveys conducted over the past 20 years in more than 60 countries.

How Global Public Opinion of China Has Shifted in the Xi Era

The Chinese Communist Party is preparing for its 20th National Congress, an event likely to result in an unprecedented third term for President Xi Jinping. Since Xi took office in 2013, opinion of China in the U.S. and other advanced economies has turned more negative. How did it get to be this way?

Negative Views of China Tied to Critical Views of Its Policies on Human Rights

Large majorities in most of the 19 countries surveyed have negative views of China, but relatively few say bilateral relations are bad.

Americans see different global threats facing the country now than in March 2020

Many U.S. adults describe cyberattacks from other countries (71%) and the spread of misinformation online (70%) as major threats to the U.S.

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• Reference--General Sources
• ASIL Guide to Electronic Resources for International Economic Law Prepared by Jean Wenger, Government Documents/Foreign & International Law Librarian Cook County Law Library.
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• CISG-France Professor Claude Witz, Saarbrücken University: Application of the Convention on the International Sale of Goods by French jurisdiction, including Cour de Cassation, Cour d'appel, and Tribunal de commerce decisions. In French.
• Directory of Economic, Commodity and Development Organizations Address, telephone listings, and description of international and regional organizations. Produced by the staff of the International Monetary Fund (IMF).
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• GATT Digital Archive Contains materials from 1947 to 1994.
• Global Sales Law Concentrates on the law of Germany, Switzerland and Austria.
• Guide on the Harmonization of International Commercial Law On GlobaLex. By Duncan Alford (2012).
• Guide to International Trade Law Sources on the Internet By Marci Hoffman.
• International Chamber of Commerce Select Business Policy Texts link for International Court of Arbitration and related rules, and the text of ICC public documents. Links for global business issues, the International Court of Arbitration, conferences and ICC publications.
• Lex Mercatoria From the University of Tromsoe, Norway, and Pace University School of Law Rich source of treaties and other primary documents in international trade law. Formerly the 'International Trade Law Monitor.'
• Organization of American States - Trade Unit Links to official sources of trade and investment information, full- text of bilateral investment treaties and trade agreements between countries in Western Hemisphere, quantitative data, and articles and opinions on trade in the Western Hemisphere.
• Regional Trade Agreements in Africa: A Historical and Bibliographic Account of ECOWAS and CEMAC By Victor Essien (2014).
• Research Guide on the Trading Systems in the Asian-Pacific Region: APEC, ASEAN and their Members On GlobaLex. By Chenglin Liu (2010), with update by Wilhelmina Randtke (2014).
• Trade Compliance Center From the U.S. Department of Commerce. Contains trade agreement database and market access database. The international trade agreements include WIPO, NAFTA and WTO documents, and bilateral trade agreements and protocols. The market access database provides for each country one or more of the following: commercial guide, country reports on economic policy and trade practices, national trade estimate reports, trade policy review summaries.
• U.N. Convention for the International Sale of Goods - Pace University Searchable CISG text, case law, bibliography, list of contracting states, UNCITRAL outline, and thesaurus of international trade keywords.
• UNIDROIT - Official Web Site of the International Institute for the Unification of Private Law Links for conventions, principles and convention implementation.
• WebEc: World Wide Web Resources in Economics Scroll down to International Economics for links on international trade, international organizations, exchange rates, international treaties. Not maintained after 2007.
• World Bank: Trade and International Integration Texts of policy research working papers and executive summaries of the trade expansion program.
• WTO History Project
• WTO and GATT Research A research guide from New York University Law Library.
• World Trade Organization home page Information about the WTO.

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• Research & Outlook

About the Trade and International Integration Research Program

The research program on trade and international integration is an integral part of the World Bank’s work on development. The goal is to promote more informed national policies, international cooperation and development assistance. Research is helping us to better understand the role of international trade in development, poverty reduction, and shared prosperity. We are also contributing to the development of databases, techniques, and policy tools to facilitate independent analysis of the impact of trade policy reforms. We help provide technical assistance and policy advice to governments seeking to reform their policy regimes, sometimes in conjunction with policy-based loans to support reforms.

Successful international integration, supported by sound national policy and effective international cooperation, has underpinned most experiences of rapid growth, shared prosperity, and reduced poverty. However, global trade growth has slowed down, a backlash against globalization is sweeping through the countries that were once its strongest advocates, and some of the most ambitious initiatives for international cooperation, from the Doha Agenda to the Trans Pacific Partnership, have run into difficulty. The objective of our research is to generate new knowledge on how international integration can be harnessed to promote development in these challenging circumstances, particularly in regions that are further away from reaping its full benefits.

Our activities include data collection, research, and dissemination on three inter-related issues:

• How does economic integration affect productivity and poverty in a diverse set of countries?
• How can national policies related to international integration be reformed to enhance growth and shared prosperity, and to reduce poverty?
• How can international cooperation help in achieving these objectives?

Despite significant advances in country-level analysis of trade patterns in final goods and conventional trade policies, we still need to improve our understanding of key issues relating to:

• Macroeconomic aspects of the slowdown in global trade growth and how this process might affect development prospects;
• Microeconomic aspects of international integration, involving firms, workers, and households, as well as the implications of technological change and global production fragmentation;
• New policy challenges, especially the growing use of non-tariff measures such as technical regulations in developing countries and their trade partners, and devising cost-effective strategies for trade facilitation and export promotion;
• International trade cooperation, especially the changing political economy of international trade cooperation, stalled multilateral and mega-regional negotiations, and the stuttering efforts to accomplish deeper regional integration among developing countries.

The focus is on concrete, applied research, supported by data and empirical tools. The aim is to assist World Bank operations and to help inform and shape policy. In many cases, the specific policy research questions we address are defined by demand from Bank operations, client countries, and our development partners. The answers are based on rigorous analysis of new data, in collaboration with researchers from developing countries, partner organizations, and prominent academic institutions. The databases and findings of research are widely and publicly disseminated and translated into actionable policy recommendations. The research projects described below are examples of the research that we are carrying out and intend to carry out rather than a comprehensive list of projects.

The current research program has four main pillars.

• The Causes and Consequences of the Trade Slowdown This component is focusing on the patterns of growth in trade and investment, globally and in specific regions and countries. Three broad questions are being addressed: How has the relationship between growth in trade and growth in incomes changed, especially in the years after the financial crisis? Why has trade growth slowed down and failed to keep up with the growth in GDP, after growing nearly twice as fast in the long 1990s? And, most important, does the slowdown matter for development?
• The Micro-Foundations of Trade, Productivity and Poverty This component is focusing on the impact of international trade on the firm, the worker and the household and hence on productivity and poverty. Three broad questions are being addressed: What are the key determinants of export participation, expansion, and survival of firms in developing countries? What are the opportunities and challenges for developing countries created by the global fragmentation of production and the emergence of global supply chains in goods and services? How does globalization interact with technological change to affect workers, and hence poverty and shared prosperity?
• Trade Policy Reform for Inclusive Growth This component reflects recent changes in policy focus, with emphasis not only on conventional trade restrictions like tariffs and quotas but also on non-tariff barriers in goods and services that are gaining prominence across a wide range of countries. In parallel, we are undertaking and developing techniques for the rigorous impact evaluation of policy interventions designed to reduce trade costs and promote exports which now command a large share of international assistance and national resources in the realm of trade.
• International Trade Cooperation for Development This component is seeking to understand the altered state of international trade cooperation, and examine how it can be revived in a way that contributes to international development. While the more ambitious projects, from the Doha Agenda to the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) have run into difficulty, some of the regions where poverty is concentrated and that are among the least integrated regions of the world are making new efforts to promote regional integration. Four questions are being addressed: How has the political economy of trade cooperation changed? How have international trade agreements evolved in terms of scope and depth? What are the implications of the progressively deeper agreements for participating and for excluding countries? What can be done to promote desirable integration and to protect the interests of those who are left out?
• Trade and International Integration Research Program
• Development Research Group

Daria Taglioni

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China's Xi to Visit France, Serbia and Hungary, Aims to Boost EU Ties

China's Xi to Visit France, Serbia and Hungary, Aims to Boost EU Ties

FILE PHOTO: Chinese President Xi Jinping talks with U.S. Secretary of State Antony Blinken (not pictured) at the Great Hall of the People, in Beijing, China, April 26, 2024. Mark Schiefelbein/Pool via REUTERS/File Photo

BEIJING (Reuters) -Chinese President Xi Jinping will visit France, Serbia and Hungary from May 5-10, his first Europe trip in five years aimed at boosting EU ties as tensions mount with the world's second largest economy.

Bilateral relations with France have maintained sound growth momentum, and both countries have had strategic communications and practical cooperation, Chinese foreign ministry spokesperson Lin Jian said in discussing Xi's visit to France.

"It is time to push the comprehensive strategic partnership between China and France to a new level and give new impetus to the healthy development of China-EU relations, to make new contributions to world peace, stability, development and progress," Lin said at a regular press conference.

"China looks forward to working with France to further enhance political mutual trust, solidarity and cooperation."

Tit-for-tat trade disputes with the EU have soured relations as Paris backed a European Commission anti-subsidy probe into Chinese electric vehicle imports.

China then launched an anti-dumping investigation into brandy, a move seen to be targeting France.

Photos You Should See - April 2024

During his trip, Xi will also hold talks with Serbian President Aleksandar Vucic to exchange views on bilateral relations and discuss upgrading the China-Serbia relationship, Lin said.

Xi will also visit Hungary, a country Lin called an "important cooperation partner for China in promoting the Belt and Road initiative, and China and Central and Eastern European countries' cooperation."

(Reporting by Laurie Chen; Writing by Bernard Orr; Editing by Christian Schmollinger and Michael Perry)

Copyright 2024 Thomson Reuters .

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Tags: France , Hungary , Asia , Europe , Serbia

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Trade and Globalization

How did international trade and globalization change over time? What is the structure today? And what is its impact?

By Esteban Ortiz-Ospina, Diana Beltekian and Max Roser

This page was first published in 2014 and last revised in April 2024.

On this topic page, you can find data, visualizations, and research on historical and current patterns of international trade, as well as discussions of their origins and effects.

Other research and writing on trade and globalization on Our World in Data:

• Is globalization an engine of economic development?
• Is trade a major driver of income inequality?

Related topics

Economic Growth

See all our data, visualizations, and writing on economic growth.

Economic Inequality

See all our data, visualizations, and writing on economic inequality.

See all our data, visualizations, and writing on migration.

See all interactive charts on Trade and Globalization ↓

Trade has changed the world economy

Trade has grown remarkably over the last century.

One of the most important developments of the last century has been the integration of national economies into a global economic system. This process of integration, often called globalization, has resulted in a remarkable growth in trade between countries.

The chart here shows the growth of world exports over more than the last two centuries. These estimates are in constant prices (i.e. have been adjusted to account for inflation) and are indexed at 1913 values.

The chart shows an extraordinary growth in international trade over the last couple of centuries: Exports today are more than 40 times larger than in 1913.

You can switch to a logarithmic scale under ‘Settings’. This will help you see that, over the long run, growth has roughly followed an exponential path.

The increase in trade has even outpaced economic growth

The chart above shows how much more trade we have today relative to a century ago. But what about trade relative to total economic output?

Over the last couple of centuries the world economy has experienced sustained positive economic growth , so looking at changes in trade relative to GDP offers another interesting perspective.

The next chart plots the value of traded goods relative to GDP (i.e. the value of merchandise trade as a share of global economic output).

Up to 1870, the sum of worldwide exports accounted for less than 10% of global output. Today, the value of exported goods around the world is around 25%. This shows that over the last hundred years, the growth in trade has even outpaced rapid economic growth.

Trade expanded in two waves

The first "wave of globalization" started in the 19th century, the second one after ww2.

The following visualization presents a compilation of available trade estimates, showing the evolution of world exports and imports as a share of global economic output .

This metric (the ratio of total trade, exports plus imports, to global GDP) is known as the “openness index”. The higher the index, the higher the influence of trade transactions on global economic activity. 1

As we can see, until 1800 there was a long period characterized by persistently low international trade – globally the index never exceeded 10% before 1800. This then changed over the course of the 19th century, when technological advances triggered a period of marked growth in world trade – the so-called “first wave of globalization”.

This first wave came to an end with the beginning of World War I, when the decline of liberalism and the rise of nationalism led to a slump in international trade. In the chart we see a large drop in the interwar period.

After World War II trade started growing again. This new – and ongoing – wave of globalization has seen international trade grow faster than ever before. Today the sum of exports and imports across nations amounts to more than 50% of the value of total global output. 2

Before the first wave of globalization, trade was driven mostly by colonialism

Over the early modern period, transoceanic flows of goods between empires and colonies accounted for an important part of international trade. The following visualizations provide a comparison of intercontinental trade, in per capita terms, for different countries.

As we can see, intercontinental trade was very dynamic, with volumes varying considerably across time and from empire to empire.

Leonor Freire Costa, Nuno Palma, and Jaime Reis, who compiled and published the original data shown here, argue that trade, also in this period, had a substantial positive impact on the economy. 3

The first wave of globalization was marked by the rise and collapse of intra-European trade

The following visualization shows a detailed overview of Western European exports by destination. Figures correspond to export-to-GDP ratios (i.e. the sum of the value of exports from all Western European countries, divided by the total GDP in this region). You can use “Settings” to switch to a relative view and see the proportional contribution of each region to total Western European exports.

This chart shows that growth in Western European trade throughout the 19th century was largely driven by trade within the region: In the period 1830-1900 intra-European exports went from 1% of GDP to 10% of GDP, and this meant that the relative weight of intra-European exports doubled over the period. However, this process of European integration then collapsed sharply in the interwar period.

After the Second World War trade within Europe rebounded, and from the 1990s onwards exceeded the highest levels of the first wave of globalization. In addition, Western Europe then started to increasingly trade with Asia, the Americas, and to a smaller extent Africa and Oceania.

The next graph, using data from Broadberry and O'Rourke (2010) 4 , shows another perspective on the integration of the global economy and plots the evolution of three indicators measuring integration across different markets – specifically goods, labor, and capital markets.

The indicators in this chart are indexed, so they show changes relative to the levels of integration observed in 1900. This gives us another perspective on how quickly global integration collapsed with the two World Wars. 5

The second wave of globalization was enabled by technology

The worldwide expansion of trade after the Second World War was largely possible because of reductions in transaction costs stemming from technological advances, such as the development of commercial civil aviation, the improvement of productivity in the merchant marines, and the democratization of the telephone as the main mode of communication. The visualization shows how, at the global level, costs across these three variables have been going down since 1930.

Reductions in transaction costs impacted not only the volumes of trade but also the types of exchanges that were possible and profitable.

The first wave of globalization was characterized by inter-industry trade. This means that countries exported goods that were very different from what they imported – England exchanged machines for Australian wool and Indian tea. As transaction costs went down, this changed. In the second wave of globalization, we are seeing a rise in intra -industry trade (i.e. the exchange of broadly similar goods and services is becoming more and more common). France, for example, now both imports and exports machines to and from Germany.

The following visualization, from the UN World Development Report (2009) , plots the fraction of total world trade that is accounted for by intra-industry trade, by type of goods. As we can see, intra-industry trade has been going up for primary, intermediate, and final goods.

This pattern of trade is important because the scope for specialization increases if countries are able to exchange intermediate goods (e.g. auto parts) for related final goods (e.g. cars).

Trade and trade partners by country

Above, we examined the broad global trends over the last two centuries. Let's now examine country-level trends over this long and dynamic period.

This chart plots estimates of the value of trade in goods, relative to total economic activity (i.e. export-to-GDP ratios).

These historical estimates obviously come with a large margin of error (in the measurement section below we discuss the data limitations); yet they offer an interesting perspective.

You can edit the countries and regions selected. Each country tells a different story. 7

In the next chart we plot, country by country, the regional breakdown of exports. India is shown by default, but you can edit the countries and regions shown.

When switching to displaying relative values under ‘Settings’, we see the proportional contribution of purchases from each region. For example, we see that more than a third of Indian exports went to Asian countries in recent decades.

This gives us an interesting perspective on the changing nature of trade partnerships. In India, we see the rising importance of trade with Africa—a pattern that we discuss in more detail below .

Trade around the world today

How much do countries trade, trade openness around the world.

The metric trade as a share of GDP gives us an idea of global integration by capturing all incoming and outgoing transactions of a country.

The charts shows that countries differ a lot in the extent to which they engage in trade. Trade, for example, is much less important to the US economy than for other rich countries.

If you press the play button on the map, you can see changes over time. This reveals that, despite the great variation between countries, there is a common trend: over the last couple of decades trade openness has gone up in most countries.

Exports and imports in real dollars

Expressing the value of trade as a share of GDP tells us the importance of trade in relation to the size of economic activity. Let's now take a look at trade in monetary terms – this tells us the importance of trade in absolute, rather than relative terms.

The chart shows the value of exports (goods plus services) in dollars, country by country.

The main takeaway here is that the trend towards more trade is more pronounced than in the charts showing shares of GDP. This is not surprising: most countries today produce more than a couple of decades ago , and at the same time they trade more of what they produce. 8

What do countries trade?

Trade in goods vs. trade in services.

Trade transactions include goods (tangible products that are physically shipped across borders by road, rail, water, or air) and services (intangible commodities, such as tourism, financial services, and legal advice).

Many traded services make merchandise trade easier or cheaper—for example, shipping services, or insurance and financial services.

Trade in goods has been happening for millennia , while trade in services is a relatively recent phenomenon.

In some countries services are today an important driver of trade: in the UK services account for around half of all exports; and in the Bahamas, almost all exports are services.

In other countries, such as Nigeria and Venezuela, services account for a small share of total exports.

Globally, trade in goods accounts for the majority of trade transactions. But as this chart shows, the share of services in total global exports has slightly increased in recent decades. 9

How are trade partnerships changing?

Bilateral trade is becoming increasingly common.

If we consider all pairs of countries that engage in trade around the world, we find that in the majority of cases, there is a bilateral relationship today: most countries that export goods to a country also import goods from the same country.

The interactive visualization shows this. 10 In the chart, all possible country pairs are partitioned into three categories: the top portion represents the fraction of country pairs that do not trade with one another; the middle portion represents those that trade in both directions (they export to one another); and the bottom portion represents those that trade in one direction only (one country imports from, but does not export to, the other country).

As we can see, bilateral trade is becoming increasingly common (the middle portion has grown substantially). However, many countries still do not trade with each other at all.

South-South trade is becoming increasingly important

The next visualization here shows the share of world merchandise trade that corresponds to exchanges between today's rich countries and the rest of the world.

The 'rich countries' in this chart are: Australia, Austria, Belgium, Canada, Cyprus, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, Japan, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and the United States. 'Non-rich countries' are all the other countries in the world.

As we can see, up until the Second World War, the majority of trade transactions involved exchanges between this small group of rich countries. But this has changed quickly over the last couple of decades, and today, trade between non-rich countries is just as important as trade between rich countries.

In the past two decades, China has been a key driver of this dynamic: the UN Human Development Report (2013) estimates that between 1992 and 2011, China's trade with Sub-Saharan Africa rose from $1 billion to more than $140 billion. 11

The majority of preferential trade agreements are between emerging economies

The last few decades have not only seen an increase in the volume of international trade, but also an increase in the number of preferential trade agreements through which exchanges take place. A preferential trade agreement is a trade pact that reduces tariffs between the participating countries for certain products.

The visualization here shows the evolution of the cumulative number of preferential trade agreements in force worldwide, according to the World Trade Organization (WTO). These numbers include notified and non-notified preferential agreements (the source reports that only about two-thirds of the agreements currently in force have been notified to the WTO) and are disaggregated by country groups.

This figure shows the increasingly important role of trade between developing countries (South-South trade), vis-a-vis trade between developed and developing countries (North-South trade). In the late 1970s, North-South agreements accounted for more than half of all agreements – in 2010, they accounted for about one-quarter. Today, the majority of preferential trade agreements are between developing economies.

Trading patterns have been changing quickly in middle-income countries

An important change in the composition of exported goods in these countries has accompanied the increase in trade among emerging economies over the last half century.

The next visualization plots the share of food exports in each country's total exported merchandise. These figures, produced by the World Bank, correspond to the Standard International Trade Classification, in which 'food' includes, among other goods, live animals, beverages, tobacco, coffee, oils, and fats.

Two points stand out. First, the relative importance of food exports has substantially decreased in most countries since the 1960s (although globally, it has gone up slightly more recently). Second, this decrease has been largest in middle-income countries, particularly in Latin America.

Regarding levels, as one would expect, in high-income countries, food still accounts for a much smaller share of merchandise exports than in most low- and middle-income-countries.

Trade generates efficiency gains

The raw correlation between trade and growth.

Over the last couple of centuries, the world economy has experienced sustained positive economic growth , and over the same period, this process of economic growth has been accompanied by even faster growth in global trade .

In a similar way, if we look at country-level data from the last half century we find that there is also a correlation between economic growth and trade: countries with higher rates of GDP growth also tend to have higher rates of growth in trade as a share of output. This basic correlation is shown in the chart here, where we plot the average annual change in real GDP per capita, against growth in trade (average annual change in value of exports as a share of GDP). 12

Is this statistical association between economic output and trade causal?

Among the potential growth-enhancing factors that may come from greater global economic integration are: competition (firms that fail to adopt new technologies and cut costs are more likely to fail and be replaced by more dynamic firms); economies of scale (firms that can export to the world face larger demand, and under the right conditions, they can operate at larger scales where the price per unit of product is lower); learning and innovation (firms that trade gain more experience and exposure to develop and adopt technologies and industry standards from foreign competitors). 13

Are these mechanisms supported by the data? Let's take a look at the available empirical evidence.

Evidence from cross-country differences in trade, growth, and productivity

When it comes to academic studies estimating the impact of trade on GDP growth, the most cited paper is Frankel and Romer (1999). 14

In this study, Frankel and Romer used geography as a proxy for trade to estimate the impact of trade on growth. This is a classic example of the so-called instrumental variables approach . The idea is that a country's geography is fixed, and mainly affects national income through trade. So if we observe that a country's distance from other countries is a powerful predictor of economic growth (after accounting for other characteristics), then the conclusion is drawn that it must be because trade has an effect on economic growth. Following this logic, Frankel and Romer find evidence of a strong impact of trade on economic growth.

Other papers have applied the same approach to richer cross-country data, and they have found similar results. A key example is Alcalá and Ciccone (2004). 15

This body of evidence suggests trade is indeed one of the factors driving national average incomes (GDP per capita) and macroeconomic productivity (GDP per worker) over the long run. 16

Evidence from changes in labor productivity at the firm level

If trade is causally linked to economic growth, we would expect that trade liberalization episodes also lead to firms becoming more productive in the medium and even short run. There is evidence suggesting this is often the case.

Pavcnik (2002) examined the effects of liberalized trade on plant productivity in the case of Chile, during the late 1970s and early 1980s. She found a positive impact on firm productivity in the import-competing sector. She also found evidence of aggregate productivity improvements from the reshuffling of resources and output from less to more efficient producers. 17

Bloom, Draca, and Van Reenen (2016) examined the impact of rising Chinese import competition on European firms over the period 1996-2007 and obtained similar results. They found that innovation increased more in those firms most affected by Chinese imports. They also found evidence of efficiency gains through two related channels: innovation increased and new existing technologies were adopted within firms, and aggregate productivity also increased because employment was reallocated towards more technologically advanced firms. 18

Trade does not only increase efficiency gains

Overall, the available evidence suggests that trade liberalization does improve economic efficiency. This evidence comes from different political and economic contexts and includes both micro and macro measures of efficiency.

This result is important because it shows that there are gains from trade. But of course, efficiency is not the only relevant consideration here. As we discuss in a companion article , the efficiency gains from trade are not generally equally shared by everyone. The evidence from the impact of trade on firm productivity confirms this: "reshuffling workers from less to more efficient producers" means closing down some jobs in some places. Because distributional concerns are real it is important to promote public policies – such as unemployment benefits and other safety-net programs – that help redistribute the gains from trade.

Trade has distributional consequences

The conceptual link between trade and household welfare.

When a country opens up to trade, the demand and supply of goods and services in the economy shift. As a consequence, local markets respond, and prices change. This has an impact on households, both as consumers and as wage earners.

The implication is that trade has an impact on everyone. It's not the case that the effects are restricted to workers from industries in the trade sector; or to consumers who buy imported goods. The effects of trade extend to everyone because markets are interlinked, so imports and exports have knock-on effects on all prices in the economy, including those in non-traded sectors.

Economists usually distinguish between "general equilibrium consumption effects" (i.e. changes in consumption that arise from the fact that trade affects the prices of non-traded goods relative to traded goods) and "general equilibrium income effects" (i.e. changes in wages that arise from the fact that trade has an impact on the demand for specific types of workers, who could be employed in both the traded and non-traded sectors).

Considering all these complex interrelations, it's not surprising that economic theories predict that not everyone will benefit from international trade in the same way. The distribution of the gains from trade depends on what different groups of people consume, and which types of jobs they have, or could have. 19

The link between trade, jobs and wages

Evidence from chinese imports and their impact on factory workers in the us.

The most famous study looking at this question is Autor, Dorn and Hanson (2013): "The China syndrome: Local labor market effects of import competition in the United States". 20

In this paper, Autor and coauthors examined how local labor markets changed in the parts of the country most exposed to Chinese competition. They found that rising exposure increased unemployment, lowered labor force participation, and reduced wages. Additionally, they found that claims for unemployment and healthcare benefits also increased in more trade-exposed labor markets.

The visualization here is one of the key charts from their paper. It's a scatter plot of cross-regional exposure to rising imports, against changes in employment. Each dot is a small region (a 'commuting zone' to be precise). The vertical position of the dots represents the percent change in manufacturing employment for the working-age population, and the horizontal position represents the predicted exposure to rising imports (exposure varies across regions depending on the local weight of different industries).

The trend line in this chart shows a negative relationship: more exposure goes along with less employment. There are large deviations from the trend (there are some low-exposure regions with big negative changes in employment); but the paper provides more sophisticated regressions and robustness checks, and finds that this relationship is statistically significant.

This result is important because it shows that the labor market adjustments were large. Many workers and communities were affected over a long period of time. 21

But it's also important to keep in mind that Autor and colleagues are only giving us a partial perspective on the total effect of trade on employment. In particular, comparing changes in employment at the regional level misses the fact that firms operate in multiple regions and industries at the same time. Indeed, Ildikó Magyari found evidence suggesting the Chinese trade shock provided incentives for US firms to diversify and reorganize production. 22

So companies that outsourced jobs to China often ended up closing some lines of business, but at the same time expanded other lines elsewhere in the US. This means that job losses in some regions subsidized new jobs in other parts of the country.

On the whole, Magyari finds that although Chinese imports may have reduced employment within some establishments, these losses were more than offset by gains in employment within the same firms in other places. This is no consolation to people who lost their jobs. But it is necessary to add this perspective to the simplistic story of "trade with China is bad for US workers".

Evidence from the expansion of trade in India and the impact on poverty reductions

Another important paper in this field is Topalova (2010): "Factor immobility and regional impacts of trade liberalization: Evidence on poverty from India". 23

In this paper, Topalova examines the impact of trade liberalization on poverty across different regions in India, using the sudden and extensive change in India's trade policy in 1991. She finds that rural regions that were more exposed to liberalization experienced a slower decline in poverty and lower consumption growth.

Analyzing the mechanisms underlying this effect, Topalova finds that liberalization had a stronger negative impact among the least geographically mobile at the bottom of the income distribution and in places where labor laws deterred workers from reallocating across sectors.

The evidence from India shows that (i) discussions that only look at "winners" in poor countries and "losers" in rich countries miss the point that the gains from trade are unequally distributed within both sets of countries; and (ii) context-specific factors, like worker mobility across sectors and geographic regions, are crucial to understand the impact of trade on incomes.

Evidence from other studies

• Donaldson (2018) uses archival data from colonial India to estimate the impact of India’s vast railroad network. He finds railroads increased trade, and in doing so they increased real incomes (and reduced income volatility). 24
• Porto (2006) looks at the distributional effects of Mercosur on Argentine families, and finds this regional trade agreement led to benefits across the entire income distribution. He finds the effect was progressive: poor households gained more than middle-income households because prior to the reform, trade protection benefitted the rich disproportionately. 25
• Trefler (2004) looks at the Canada-US Free Trade Agreement and finds there was a group who bore "adjustment costs" (displaced workers and struggling plants) and a group who enjoyed "long-run gains" (consumers and efficient plants). 26

The link between trade and the cost of living

The fact that trade negatively affects labor market opportunities for specific groups of people does not necessarily imply that trade has a negative aggregate effect on household welfare. This is because, while trade affects wages and employment, it also affects the prices of consumption goods. So households are affected both as consumers and as wage earners.

Most studies focus on the earnings channel and try to approximate the impact of trade on welfare by looking at how much wages can buy, using as a reference the changing prices of a fixed basket of goods.

This approach is problematic because it fails to consider welfare gains from increased product variety, and obscures complicated distributional issues such as the fact that poor and rich individuals consume different baskets so they benefit differently from changes in relative prices. 27

Ideally, studies looking at the impact of trade on household welfare should rely on fine-grained data on prices, consumption, and earnings. This is the approach followed in Atkin, Faber, and Gonzalez-Navarro (2018): "Retail globalization and household welfare: Evidence from Mexico". 28

Atkin and coauthors use a uniquely rich dataset from Mexico, and find that the arrival of global retail chains led to reductions in the incomes of traditional retail sector workers, but had little impact on average municipality-level incomes or employment; and led to lower costs of living for both rich and poor households.

The chart here shows the estimated distribution of total welfare gains across the household income distribution (the light-gray lines correspond to confidence intervals). These are proportional gains expressed as a percent of initial household income.

As we can see, there is a net positive welfare effect across all income groups; but these improvements in welfare are regressive, in the sense that richer households gain proportionally more (about 7.5 percent gain compared to 5 percent). 29

Evidence from other countries confirms this is not an isolated case – the expenditure channel really seems to be an important and understudied source of household welfare. Giuseppe Berlingieri, Holger Breinlich, Swati Dhingra, for example, investigated the consumer benefits from trade agreements implemented by the EU between 1993 and 2013; and they found that these trade agreements increased the quality of available products, which translated into a cumulative reduction in consumer prices equivalent to savings of €24 billion per year for EU consumers. 30

Implications of trade’s distributional effects

The available evidence shows that, for some groups of people, trade has a negative effect on wages and employment opportunities; at the same time, it has a large positive effect via lower consumer prices and increased product availability.

Two points are worth emphasizing.

For some households, the net effect is positive. But for some households that's not the case. In particular, workers who lose their jobs can be affected for extended periods of time, so the positive effect via lower prices is not enough to compensate them for the reduction in earnings.

On the whole, if we aggregate changes in welfare across households, the net effect is usually positive. But this is hardly a consolation for the worse off.

This highlights a complex reality: There are aggregate gains from trade , but there are also real distributional concerns. Even if trade is not a major driver of income inequalities , it's important to keep in mind that public policies, such as unemployment benefits and other safety-net programs, can and should help redistribute the gains from trade.

Explaining trade patterns: Theory and Evidence

Comparative advantage, theory: what is 'comparative advantage' and why does it matter to understand trade.

In economic theory, the 'economic cost' – or the 'opportunity cost' – of producing a good is the value of everything you need to give up in order to produce that good.

Economic costs include physical inputs (the value of the stuff you use to produce the good), plus forgone opportunities (when you allocate scarce resources to a task, you give up alternative uses of those resources).

A country or a person is said to have a 'comparative advantage' if it can produce something at a lower opportunity cost than its trade partners.

The forgone opportunities of production are key to understanding this concept. It is precisely this that distinguishes absolute advantage from comparative advantage.

To see the difference between comparative and absolute advantage, consider a commercial aviation pilot and a baker. Suppose the pilot is an excellent chef, and she can bake just as well, or even better than the baker. In this case, the pilot has an absolute advantage in both tasks. Yet the baker probably has a comparative advantage in baking, because the opportunity cost of baking is much higher for the pilot.

The freely available economics textbook The Economy: Economics for a Changing World explains this as follows: "A person or country has comparative advantage in the production of a particular good, if the cost of producing an additional unit of that good relative to the cost of producing another good is lower than another person or country’s cost to produce the same two goods."

At the individual level, comparative advantage explains why you might want to delegate tasks to someone else, even if you can do those tasks better and faster than them. This may sound counterintuitive, but it is not: If you are good at many things, it means that investing time in one task has a high opportunity cost, because you are not doing the other amazing things you could be doing with your time and resources. So, at least from an efficiency point of view, you should specialize on what you are best at, and delegate the rest.

The same logic applies to countries. Broadly speaking, the principle of comparative advantage postulates that all nations can gain from trade if each specializes in producing what they are relatively more efficient at producing, and imports the rest: “do what you do best, import the rest”. 31

In countries with a relative abundance of certain factors of production, the theory of comparative advantage predicts that they will export goods that rely heavily upon those factors: a country typically has a comparative advantage in those goods that use its abundant resources. Colombia exports bananas to Europe because it has comparatively abundant tropical weather.

Is there empirical support for comparative-advantage theories of trade?

The empirical evidence suggests that the principle of comparative advantage does help explain trade patterns. Bernhofen and Brown (2004) 32 , for instance, provide evidence using the experience of Japan. Specifically, they exploit Japan’s dramatic nineteenth-century move from a state of near complete isolation to wide trade openness.

The graph here shows the price changes of the key tradable goods after the opening up to trade. It presents a scatter diagram of the net exports in 1869 graphed in relation to the change in prices from 1851–53 to 1869. As we can see, this is consistent with the theory: after opening to trade, the relative prices of major exports such as silk increased (Japan exported what was cheap for them to produce and which was valuable abroad), while the relative price of imports such as sugar declined (they imported what was relatively more difficult for them to produce, but was cheap abroad).

Trade diminishes with distance

The resistance that geography imposes on trade has long been studied in the empirical economics literature – and the main conclusion is that trade intensity is strongly linked to geographic distance.

The visualization, from Eaton and Kortum (2002), graphs 'normalized import shares' against distance. 33 Each dot represents a country pair from a set of 19 OECD countries, and both the vertical and horizontal axes are expressed on logarithmic scales.

The 'normalized import shares' in the vertical axis provide a measure of how much each country imports from different partners (see the paper for details on how this is calculated and normalized), while the distance in the horizontal axis corresponds to the distance between central cities in each country (see the paper and references therein for details on the list of cities). As we can see, there is a strong negative relationship. Trade diminishes with distance. Through econometric modeling, the paper shows that this relationship is not just a correlation driven by other factors: their findings suggest that distance imposes a significant barrier to trade.

The fact that trade diminishes with distance is also corroborated by data on trade intensity within countries. The visualization here shows, through a series of maps, the geographic distribution of French firms that export to France's neighboring countries. The colors reflect the percentage of firms that export to each specific country.

As we can see, the share of firms exporting to each of the corresponding neighbors is the largest close to the border. The authors also show in the paper that this pattern holds for the value of individual-firm exports – trade value decreases with distance to the border.

Institutions

Conducting international trade requires both financial and non-financial institutions to support transactions. Some of these institutions are fairly obvious (e.g. law enforcement); but some are less obvious. For example, the evidence shows that producers in exporting countries often need credit in order to engage in trade.

The scatter plot, from Manova (2013), shows the correlation between levels in private credit (specifically exporters’ private credit as a share of GDP) and exports (average log bilateral exports across destinations and sectors). 35 As can be seen, financially developed economies – those with more dynamic private credit markets – typically outperform exporters with less evolved financial institutions.

Other studies have shown that country-specific institutions, like the knowledge of foreign languages, for instance, are also important to promote foreign relative to domestic trade. 36

Increasing returns to scale

The concept of comparative advantage predicts that if all countries had identical endowments and institutions, there would be little incentive for specialization because the opportunity cost of producing any good would be the same in every country.

So you may wonder: why is it then the case that in the last few years, we have seen such rapid growth in intra-industry trade between rich countries?

The increase in intra-industry between rich countries seems paradoxical under the light of comparative advantage because in recent decades we have seen convergence in key factors, such as human capital , across these countries.

The solution to the paradox is actually not very complicated: Comparative advantage is one, but not the only force driving incentives to specialization and trade.

Several economists, most notably Paul Krugman, have developed theories of trade in which trade is not due to differences between countries, but instead due to "increasing returns to scale" – an economic term used to denote a technology in which producing extra units of a good becomes cheaper if you operate at a larger scale.

The idea is that specialization allows countries to reap greater economies of scale (i.e. to reduce production costs by focusing on producing large quantities of specific products), so trade can be a good idea even if the countries do not differ in endowments, including culture and institutions.

These models of trade, often referred to as “New Trade Theory”, are helpful in explaining why in the last few years we have seen such rapid growth in two-way exchanges of goods within industries between developed nations.

In a much-cited paper, Evenett and Keller (2002) show that both factor endowments and increasing returns help explain production and trade patterns around the world. 37

You can learn more about New Trade Theory, and the empirical support behind it, in Paul Krugman's Nobel lecture .

Measurement and data quality

There are dozens of official sources of data on international trade, and if you compare these different sources, you will find that they do not agree with one another. Even if you focus on what seems to be the same indicator for the same year in the same country, discrepancies are large.

Such differences between sources can also be found in rich countries where statistical agencies tend to follow international reporting guidelines more closely.

There are also large bilateral discrepancies within sources: the value of goods that country A exports to country B can be more than the value of goods that country B imports from country A.

Here we explain how international trade data is collected and processed, and why there are such large discrepancies.

What data is available?

The data hubs from several large international organizations publish and maintain extensive cross-country datasets on international trade. Here's a list of the most important ones:

• World Bank Open Data
• WTO Statistics
• UN Comtrade
• UNCTAD World Integrated Trade Solutions

In addition to these sources, there are also many other academic projects that publish data on international trade. These projects tend to rely on data from one or more of the sources above, and they typically process and merge series in order to improve coverage and consistency. Three important sources are:

• The Correlates of War Project . 38
• The NBER-United Nations Trade Dataset Project .
• The CEPII Bilateral Trade and Gravity Data Project . 39

How large are the discrepancies between sources?

In the visualization here, we compare the data published by several of the sources listed above, country by country, from 1955 to today.

For each country, we exclude trade in services, and we focus only on estimates of the total value of exported goods, expressed as shares of GDP. 40

As this chart clearly shows, different data sources often tell very different stories. If you change the country or region shown you will see that this is true, to varying degrees, across all countries and years.

Constructing this chart was demanding. It required downloading trade data from many different sources, collecting the relevant series, and then standardizing them so that the units of measure and the geographical territories were consistent.

All series, except the two long-run series from CEPII and NBER-UN, were produced from data published by the sources in current US dollars and then converted to GDP shares using a unique source (World Bank).

So, if all series are in the same units (share of national GDP) and they measure the same thing (value of goods exported from one country to the rest of the world), what explains the differences?

Let's dig deeper to understand what's going on.

Why doesn't the data add up?

Differences in guidelines used by countries to record and report trade data.

Broadly speaking, there are two main approaches used to estimate international merchandise trade:

• The first approach relies on estimating trade from customs records , often complementing or correcting figures with data from enterprise surveys and administrative records associated with taxation. The main manual providing guidelines for this approach is the International Merchandise Trade Statistics Manual (IMTS).
• The second approach relies on estimating trade from macroeconomic data , typically National Accounts . The main manual providing guidelines for this approach is the Balance of Payments and International Investment Position Manual (BPM6), which was drafted in parallel with the 2008 System of National Accounts of the United Nations (SNA 2008). The idea behind this approach is to record changes in economic ownership. 41

Under these two approaches, it is common to distinguish between 'traded merchandise' and 'traded goods'. The distinction is often made because goods simply being transported through a country (i.e., goods in transit) are not considered to change a country's stock of material resources and are hence often excluded from the more narrow concept of 'merchandise trade'.

Also, adding to the complexity, countries often rely on measurement protocols developed alongside approaches and concepts that are not perfectly compatible to begin with. In Europe, for example, countries use the 'Compilers guide on European statistics on international trade in goods'.

Measurement error and other inconsistencies

Even when two sources rely on the same broad accounting approach, discrepancies arise because countries fail to adhere perfectly to the protocols.

In theory, for example, the exports of country A to country B should mirror the imports of country B from country A. But in practice this is rarely the case because of differences in valuation. According to the BPM6, imports, and exports should be recorded in the balance of payments accounts on a ' free on board (FOB) basis', which means using prices that include all charges up to placing the goods on board a ship at the port of departure. Yet many countries stick to FOB values only for exports, and use CIF values for imports (CIF stands for 'Cost, Insurance and Freight', and includes the costs of transportation). 42

The chart here gives you an idea of how large import-export asymmetries are. Shown are the differences between the value of goods that each country reports exporting to the US, and the value of goods that the US reports importing from the same countries. For example, for China, the figure in the chart corresponds to the “Value of merchandise imports in the US from China” minus the “Value of merchandise exports from China to the US”.

The differences in the chart here, which are both positive and negative, suggest that there is more going on than differences in FOB vs. CIF values. If all asymmetries were coming from FOB-CIF differences, then we should only see positive values in the chart (recall that, unlike FOB values, CIF values include the cost of transportation, so CIF values are larger).

What else may be going on here?

Another common source of measurement error relates to the inconsistent attribution of trade partners. An example is failure to follow the guidelines on how to treat goods passing through intermediary countries for processing or merchanting purposes. As global production chains become more complex, countries find it increasingly difficult to unambiguously establish the origin and final destination of merchandise, even when rules are established in the manuals. 43

And there are still more potential sources of discrepancies. For example differences in customs and tax regimes, and differences between "general" and "special" trade systems (i.e. differences between statistical territories and actual country borders, which do not often coincide because of things like 'custom free zones'). 44

Even when two sources have identical trade estimates, inconsistencies in published data can arise from differences in exchange rates. If a dataset reports cross-country trade data in US dollars, estimates will vary depending on the exchange rates used. Different exchange rates will lead to conflicting estimates, even if figures in local currency units are consistent.

A checklist for comparing sources

Asymmetries in international trade statistics are large and arise for a variety of reasons. These include conceptual inconsistencies across measurement standards and inconsistencies in the way countries apply agreed-upon protocols. Here's a checklist of issues to keep in mind when comparing sources.

• Differences in underlying records: is trade measured from National Accounts data rather than directly from custom or tax records?
• Differences in import and export valuations: are transactions valued at FOB or CIF prices?
• Inconsistent attribution of trade partners: how is the origin and final destination of merchandise established?
• Difference between 'goods' and 'merchandise': how are re-importing, re-exporting, and intermediary merchanting transactions recorded?
• Exchange rates: how are values converted from local currency units to the currency that allows international comparisons (most often the US-$)?
• Differences between 'general' and 'special' trade system: how is trade recorded for custom-free zones?
• Other issues: Time of recording, confidentiality policies, product classification, deliberate mis-invoicing for illicit purposes.

Many organizations producing trade data have long recognized these factors. Indeed, international organizations often incorporate corrections in an attempt to improve data quality.

The OECD's Balanced International Merchandise Trade Statistics , for example, uses its own approach to correct and reconcile international merchandise trade statistics. 45

The corrections applied in the OECD's 'balanced' series make this the best source for cross-country comparisons. However, this dataset has low coverage across countries, and it only goes back to 2011. This is an important obstacle since the complex adjustments introduced by the OECD imply we can't easily improve coverage by appending data from other sources. At Our World in Data we have chosen to rely on CEPII as the main source for exploring long-run changes in international trade, but we also rely on World Bank and OECD data for up-to-date cross-country comparisons.

There are two key lessons from all of this. The first lesson is that, for most users of trade data out there, there is no obvious way of choosing between sources. And the second lesson is that, because of statistical glitches, researchers and policymakers should always take analyses of trade data with a pinch of salt. For example, in a recent high-profile report , researchers attributed mismatches in bilateral trade data to illicit financial flows through trade mis-invoicing (or trade-based money laundering). As we show here, this interpretation of the data is not appropriate, since mismatches in the data can, and often do arise from measurement inconsistencies rather than malfeasance. 46

Hopefully, the discussion and checklist above can help researchers better interpret and choose between conflicting data sources.

Interactive charts on Trade and Globalization

The openness index, when calculated for the world as a whole, includes double-counting of transactions: When country A sells goods to country B, this shows up in the data both as an import (B imports from A) and as an export (A sells to B).

Indeed, if you compare the chart showing the global trade openness index and the chart showing global merchandise exports as a share of GDP , you find that the former is almost twice as large as the latter.

Why is the global openness index not exactly twice the value reported in the chart plotting global merchandise exports? There a three reasons.

First, the global openness index uses different sources. Second, the global openness index includes trade in goods and services, while merchandise exports include goods but not services. And third, the amount that country A reports exporting to country B does not usually match the amount that B reports importing from A.

We explore this in more detail in our measurement section below .

Klasing and Milionis (2014), one of the sources in the chart, published an additional set of estimates under an alternative specification. Similarly, for the period 1960-2015, the World Bank's World Development Indicators published an alternative set of estimates similar but not identical to those included from the Penn World Tables (9.1). You find all these alternative overlapping sources in this comparison chart .

Leonor Freire Costa, Nuno Palma, and Jaime Reis (2015) – The great escape? The contribution of the empire to Portugal's economic growth, 1500–1800 Leonor Freire Costa Nuno Palma Jaime Reis European Review of Economic History, Volume 19, Issue 1, 1 February 2015, Pages 1–22, https://doi.org/10.1093/ereh/heu019

Broadberry and O'Rourke (2010) - The Cambridge Economic History of Modern Europe: Volume 2, 1870 to the Present. Cambridge University Press.

Integration in the goods markets is measured here through the 'trade openness index', which is defined by the sum of exports and imports as a share of GDP. In our interactive chart you can explore trends in trade openness over this period for a selection of European countries.

Broadberry and O'Rourke (2010) - The Cambridge Economic History of Modern Europe: Volume 2, 1870 to the Present. Cambridge University Press. The graph depicts the “evolution of three indicators measuring integration in commodity, labor, and capital markets over the long run. Commodity market integration is measured by computing the ratio of exports to GDP. Labor market integration is measured by dividing the migratory turnover by population. Financial integration is measured using Feldstein–Horioka estimators of current account disconnectedness.”

We also have the same chart but showing imports .

We also have the same chart, but showing imports .

This interactive chart shows trade in services as a share of GDP across countries and regions.

This chart was inspired by a chart from Helpman, E., Melitz, M., & Rubinstein, Y. (2007). Estimating trade flows: Trading partners and trading volumes (No. w12927). National Bureau of Economic Research.

We also have the same data, but as a stacked-area chart .

There are different ways of capturing this correlation. I focus here on all countries with data over the period 1945-2014. You can find a similar chart using different data sources and time periods in Ventura, J. (2005). A global view of economic growth. Handbook of economic growth, 1, 1419-1497. Online here .

The textbook The Economy: Economics for a Changing World explains this in more detail.

Frankel, J. A., & Romer, D. H. (1999). Does trade cause growth? American Economic Review, 89(3), 379-399.

Alcalá, F., & Ciccone, A. (2004). Trade and productivity . The Quarterly Journal of Economics, 119(2), 613-646.

There are many papers that try to answer this specific question with macro data. For an overview of papers and methods see: Durlauf, S. N., Johnson, P. A., & Temple, J. R. (2005). Growth econometrics. Handbook of economic growth, 1, 555-677.

Pavcnik, N. (2002). Trade liberalization, exit, and productivity improvements: Evidence from Chilean plants . The Review of Economic Studies, 69(1), 245-276.

Bloom, N., Draca, M., & Van Reenen, J. (2016). Trade induced technical change? The impact of Chinese imports on innovation, IT and productivity. The Review of Economic Studies, 83(1), 87-117. Available online here .

You can read more about these economic concepts, and the related predictions from economic theory, in Chapter 18 of the textbook The Economy: Economics for a Changing World .

David, H., Dorn, D., & Hanson, G. H. (2013). The China syndrome: Local labor market effects of import competition in the United States . American Economic Review, 103(6), 2121-68.

It's important to mention here that the economist Jonathan Rothwell wrote a paper suggesting these findings are the result of a statistical illusion. Rothwell's critique received some attention from the media , but Autor and coauthors provided a reply , which I think successfully refutes this claim.

Magyari, I. (2017). Firm Reorganization, Chinese Imports, and US Manufacturing Employment . US Census Bureau, Center for Economic Studies.

Topalova, P. (2010). Factor immobility and regional impacts of trade liberalization: Evidence on poverty from India . American Economic Journal: Applied Economics, 2(4), 1-41.

Donaldson, D. (2018). Railroads of the Raj: Estimating the impact of transportation infrastructure . American Economic Review, 108(4-5), 899-934.

Porto, G (2006). Using Survey Data to Assess the Distributional Effects of Trade Policy. Journal of International Economics 70 (2006) 140–160.

Trefler, D. (2004). The long and short of the Canada-US free trade agreement . American Economic Review, 94(4), 870-895.

See: (i) Feenstra, R. C., & Weinstein, D. E. (2017). Globalization, markups, and US welfare . Journal of Political Economy, 125(4), 1040-1074. (ii) Fajgelbaum, P. D., & Khandelwal, A. K. (2016). Measuring the unequal gains from trade . The Quarterly Journal of Economics, 131(3), 1113-1180.

Atkin, David, Benjamin Faber, and Marco Gonzalez-Navarro. "Retail globalization and household welfare: Evidence from Mexico." Journal of Political Economy 126.1 (2018): 1-73.

In the paper, Atkin and coauthors explore the reasons for this and find that the regressive nature of the distribution is mainly due to richer households placing higher weight on the product variety and shopping amenities on offer at these new foreign stores.

Berlingieri, G., Breinlich, H., & Dhingra, S. (2018). The Impact of Trade Agreements on Consumer Welfare—Evidence from the EU Common External Trade Policy. Journal of the European Economic Association.

Nobel laureate Paul Samuelson (1969) was once challenged by the mathematician Stanislaw Ulam: "Name me one proposition in all of the social sciences which is both true and non-trivial." It was several years later than he thought of the correct response: comparative advantage. "That it is logically true need not be argued before a mathematician; that is is not trivial is attested by the thousands of important and intelligent men who have never been able to grasp the doctrine for themselves or to believe it after it was explained to them."

(NB. This is an excerpt from https://www.wto.org/english/res_e/reser_e/cadv_e.htm)

Bernhofen, D., & Brown, J. (2004). A Direct Test of the Theory of Comparative Advantage: The Case of Japan. Journal of Political Economy, 112(1), 48-67. doi:1. Retrieved from http://www.jstor.org/stable/10.1086/379944 doi:1

Eaton, J., & Kortum, S. (2002). Technology, geography, and trade. Econometrica, 70(5), 1741-1779.

Crozet, M., & Koenig, P. (2010). Structural Gravity Equations with Intensive and Extensive Margins. The Canadian Journal of Economics / Revue Canadienne D'Economique, 43(1), 41-62. Retrieved from http://www.jstor.org/stable/40389555

Manova, Kalina. "Credit constraints, heterogeneous firms, and international trade." The Review of Economic Studies 80.2 (2013): 711-744.

Melitz, J. (2008). Language and foreign trade. European Economic Review, 52(4), 667-699.

Evenett, S. J., & Keller, W. (2002). On theories explaining the success of the gravity equation . Journal of Political Economy, 110(2), 281-316.

For more information on how the COW trade datasets were constructed see: (i) Barbieri, Katherine, and Omar M. G. Omar Keshk. 2016. Correlates of War Project Trade Data Set Codebook, Version 4.0. Available at http://correlatesofwar.org and (ii) Barbieri, Katherine, Omar M. G. Keshk, and Brian Pollins. 2009. TRADING DATA: Evaluating our Assumptions and Coding Rules. Conflict Management and Peace Science, 26(5): 471–491.

Further information on CEPII's methodology can be found in their working paper .

The chart includes series labeled by the sources as 'merchandise trade' and 'goods trade'. As we explain below, part of the asymmetries in trade data comes from the fact that, although 'merchandise' and 'goods' are equivalent in the dictionary, these two terms often measure related but different things.

For example, if there is no change in ownership (e.g. a firm exports goods to its factory in another country for processing, and then re-imports the processed goods) the manual says that statistical agencies should only record the net difference in value. You can find more details about this in an OECD Statistics Briefing .

This issue is actually also a source of disagreement between National Accounts data and customs data. You can read more about it in this report: Harrison, Anne (2013) FOB/CIF Issue in Merchandise Trade/Transport of Goods in BPM6 and the 2008 SNA, Twenty-Fifth Meeting of the IMF Committee on Balance of Payments Statistics, Washington, D.C .

Precisely because of the difficulty that arises when trying to establish the origin and final destination of merchandise, some sources distinguish between national and dyadic (i.e. 'directed') trade estimates.

For more details about general and special trade see the Eurostat glossary .

The OECD approach consists of four steps, which they describe as follows: "First, data are collected and organized, and imports are converted to FOB prices to match the valuation of exports. Secondly, data are adjusted for several specific large problems known to drive asymmetries. Presently these include “modular” adjustments for unallocated and confidential trade; for exports by Hong Kong, China; for Swiss non-monetary gold; and for clear-cut cases of product misclassifications. The list of modules is expected to grow over time. In the third step, adjusted data are balanced using a “Symmetry Index” that weights exports and imports. As the final step, the data are also converted to Classification of Products by Activity (CPA) products to better align with National Accounts statistics, such as in national Supply-Use tables." You can read more about it here . In addition to the OECD, other sources also use corrections. The IMF's DOTS dataset, for example, uses a 6 percent rule for converting import valuations (in CIF) into export values (in FOB). More information can be found in the IMF's (2018) working paper on 'New Estimates for Direction of Trade Statistics'.

For more details on this see Forstater, M. (2018) Illicit Financial Flows, Trade Misinvoicing, and Multinational Tax Avoidance: The Same or Different? , CGD Policy Paper 123.

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These 3 charts show how international trade works - and the current state it’s in

How have trade patterns changed recently? Image:  UNSPLASH/Maksym Kaharlytskyi

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Stay up to date:, geo-economics.

• International trade is the lifeblood of the world economy, but is subject to constant change from economic, political and environmental forces.
• Emerging economies have seen their share of total global trade rocket in recent years.
• China, for instance, is now responsible for 15% of all world exports.
• Unfinished goods, components and services account for 70% of all trade.
• While trade in services accounts for two-thirds of global GDP, COVID-19 has had a devastating impact on trade patterns.

International trade is the lifeblood of the world economy, providing the goods and services that are traded across borders to bring wealth and prosperity to nations.

But how exactly does it work? The Organization for Economic Cooperation and Development (OECD) has attempted to unpack it all in the following three charts.

How trade works

International trade flows along hugely complex supply chains between nations that source raw materials, to manufacturing countries that make and process them, and then on to consumer nations, which put the final products to use.

When trade is allowed to flourish, the nexus of supply routes, suppliers, processors and consumers behaves like a living thing. When change happens at any one link in the chain – say, when a miner of iron ore goes bust, or when the price of the metal suddenly rises – that will reverberate along the chain.

Change can come from a variety of stimuli. Fluctuating consumer demand for goods, technological innovations and new ways of moving products around the globe are among the most common.

The rise of emerging markets

Over time, the nature of trade and the products carried will be markedly transformed, and that can have huge implications for national economies.

This is most strikingly seen in the economic rise of China. Once an impoverished nation, it is now the world’s second-largest economy and the largest outbound trader of goods, accounting for almost 15% of all exports, according to United Nations data.

Have you read?

Coronavirus could reduce world trade by up to a third, according to the wto, what the future holds for world trade, according to 8 global leaders, we need a new consensus on global trade. here’s why.

Emerging markets more broadly have also been steadily growing, as the chart above shows. The lower wages, plentiful land and accommodative governments found in these countries provide manufacturers with a source of low-cost production.

With unfinished goods, components and services now accounting for 70% of all trade, emerging markets such as the BRIICS countries – comprising Brazil, Russia, India, Indonesia, China and South Africa – are the largest beneficiaries of this development, their share of total global trade rocketing in recent years.

Obstacles to trade in services

Trade in services is also vital to a country’s economic health. The international exchange of ideas, expertise and assistance – from architecture and law to logistics and telecommunications – account for half of all global exports and two-thirds of global GDP .

For that reason, they are vulnerable to political manipulation to protect particular domestic industries or to put pressure on other nations. The threat of non-tariff barriers – which include quotas on imports and subsidies to make local producers more competitive than foreign imports – and tariffs can change patterns of trade.

The importance of trade agreements

Protectionist measures like these often have unintended consequences and create geopolitical friction. To guard against that, and to maximize the benefits of exchanges with favourable partners, multilateral trade agreements have flourished since World War II.

The creation of groupings like the World Trade Organization , which grew out of the General Agreement on Tariffs and Trade, helped in the creation of the globalized trade structures we see today. They have also helped prevent trade rows between nations from escalating into global trade wars.

The trade map is always changing

Even so, trade patterns remain under threat of sudden revulsion. Geopolitical risks and unexpected natural disasters can all alter their delicate balance.

Climate change is also expected to have a huge impact on world trade. This has been highlighted in the past two years when the COVID-19 pandemic radically reshaped the entire global trading network. Virus-mitigation lockdowns, labour shortages, slumping demand for some goods and rising demand for others all helped to tear up the trade map .

Emerging technologies, the world’s climate emergency and growing trade tensions between the US, China and Europe are disrupting global trade.

The World Economic Forum, in partnership with the United Nations Development Programme (UNDP), announced in September 2019 a new Strategic Value Framework to help all stakeholders along the global value chain understand and respond to disruptions brought on by significant global trends.

The Strategic Value Framework explores three global value chains: the cotton, electronics and automotive industries. It explains that by measuring and effectively responding to disruptions in these three global value chains, the total value could increase by about 65% over three years. No response to the disruptions could result in a loss of up to 28% across the value chains.

The Strategic Value Framework is an initiative of the Forum’s Platform for Shaping the Future of Advanced Manufacturing and Production. Companies are invited to join the platform to access this advanced tool and support ongoing industry-specific implications and outcomes through workshops, dialogues, interviews and more.

As economies begin to recover from COVID’s financial hit, it’s unlikely global trade will revert to its pre-pandemic patterns. What is certain, however, is that it won’t remain as it is for very long, as global financial, political and environmental changes continue to exert their influence.

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Cities, Heterogeneous Firms, and Trade

Does international trade affect the growth of cities, and vice versa? Assembling disaggregate data for four countries, we document a novel stylized fact: Export activity is disproportionately concentrated in larger cities – even more so than overall economic activity. We rationalize this fact by marrying a standard quantitative spatial economics model with a heterogeneous firm model that features selection into the domestic and the export market. Our model delivers novel predictions for the bi-directional interactions between trade and urban dynamics: On the one hand, trade liberalization shifts employment towards larger cities, and on the other hand, liberalizing land use raises exports. We structurally estimate the model using data for the universe of Chinese manufacturing and French firms. We find that trade policies have quantitatively meaningful impacts on urban outcomes and vice versa, and that the aggregate effects of trade and urban policies differ from more standard models that do not account for the interaction between trade and cities. In addition, a distinguishing prediction of our model – which we confirm in the data – is that local trade elasticities vary systematically with city size, so that a country's aggregate trade elasticity depends on the spatial distribution of production within its borders.

This paper combines independent work from Garcia-Marin, Potlogea, Voigtländer, and Yang (2020) and Bakker (2020). We would like to thank Dominick Bartelme, Fabian Eckert, Pablo Fajgelbaum, Oleg Itskhoki, Tim Kehoe, Fernando Parro, Thomas Sampson, Oren Ziv as well as numerous seminar and conference audiences. Bakker thanks his advisors and members of his committee, Kalina Manova, Ferdinand Rauch, Daniel Sturm, Gabriel Ulyssea and Tony Venables. Francisco Diaz-Valdes and Alexander Valenzuela provided superb research assistance. We gratefully acknowledge research support from UK Research and Innovation (ESRC New Investigator Grant, Grant Reference ES/W008017/1, project title "Cities, Trade and Productivity"), from the UCLA Ziman Center’s Rosalinde, Arthur Gilbert Program in Real Estate, Finance and Urban Economics, and from CONICYT-Chile through project Fondecyt Regular 1191536. Corresponding author: Nico Voigtländer ([email protected]). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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