THE POLITICAL ECONOMY OF INTERNATIONAL TRADE

THE POLITICAL ECONOMY OF INTERNATIONAL TRADE

1. Preference: protection or free trade

   • Pressure group politics
   • Sectoral and factoral models

2. Political institutions

   • institutional differences in countries’ political regime
   • Democratic
   • The structure of the government and the nature of the party system

3. International Politics

   • theory of hegemonic stability (HST)
   • presence and influence of international institutions

4. EFFECT OF TRADE

   • Domestic Politics
     • trade liberalization can change domestic preferences about trade
     • character of national political institutions
     • constrain the policy choices available to decision makers
   • International Politics
     • political relations with other countries

5. Trade policies

   • policies that have a direct impact on the domestic prices of tradables, that is, goods and services traded across national boundaries as imports and/or exports.