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GTAP Resource #4186

"Made in China or Made in Tlon ? The quest for a new origin concept measuring international trade."
by Inama, Stefano


Traditional trade policy instruments were designed to deal with a situation where production was seen as an activity which essentially took place within national frontiers, although, obviously, raw materials were imported and semi-finished products exported. These instruments were applied to influence or control the price or quantity of goods that entered a country. Liberalization under GATT was achieved primarily by progressively tightening the prohibition on quantitative measures and reduced tariffs through multilateral negotiations based on reciprocity.

Advances in information, communications and management technology make it possible for enterprises to globalize their production. They have adopted new "modes" of penetrating markets in addition to trade, foreign direct investment, international subcontracting, licensing of technology, mergers and acquisitions, international joint ventures and inter-firm agreements (strategic alliances). The composition of trade has shifted to high-tech products, mutual trade in like products and trade in services.

Governments have shifted their priorities, abandoning import substitution policies for those intended to increase their competitiveness in the global market. Such policies have involved supporting "their" firms global operations, even when this leads to an increase in outward investment and transfer of employment to lower-cost countries. These are considered to be inevitable elements of national competitiveness, which is perceived as depending to a large extent on the overall global competitiveness of national firms.

At the same time, most countries are attempting to improve their physical, legal and administrative infrastructure as well as fiscal incentives to attract foreign investors. This tendency of delocalize firms and operations have been the persistent feature of the first phase of the globalization, while at present another tendency if arising where firms may still move abroad ...

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Version: first draft with excel file-to be completed
Created: Inama, S. (4/15/2013)
Updated: Batta, G. (7/15/2013)
Visits: 971
- Multilateral trade negotiations

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