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Understanding Poverty$
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Abhijit Vinayak Banerjee, Roland Bénabou, and Dilip Mookherjee

Print publication date: 2006

Print ISBN-13: 9780195305197

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0195305191.001.0001

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Globalization and All That

Globalization and All That

Chapter:
(p.85) 6 Globalization and All That
Source:
Understanding Poverty
Author(s):

Abhijit Vinayak Banerjee (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0195305191.003.0006

This essay begins with a discussion of the Samuelson-Stolper Theorem, which states that if a labor-abundant country is opened to trade with a labor-scarce country, laborers in the first country and the employers in the second will profit at the expense of the workers in the second country and the employers in the first. It then looks at the trade following World War II under the supervision of the newly created guardians of the world trading system: the World Bank, the IMF, and the GATT, as well as trade liberalization in Mexico, Latin America, and Asia. It discusses the issue of reputation: what it means to countries and how it determines what a country ends up exporting to the world.

Keywords:   international trade, high trade theory, Samuelson-Stolper Theorem, inequality, liberalization, reputation

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