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121. The Eastern Mediterranean in the New Era of Major-Power Competition: Prospects for U.S.-Israeli Cooperation

Author:
Douglas J. Feith and Seth Cropsey
Publication Date:
09-2019
Content Type:
Case Study
Institution:
Hudson Institute
Abstract:
This is a study of Eastern Mediterranean security and how the United States and Israel can improve cooperation to protect their common interests. The study’s particular focus is the maritime domain. Few things in world affairs survive for millennia. It’s also true that few are ever really new. In the Eastern Mediterranean, what has endured for thousands of years is the strategic attention of great powers. The region retains it today, commanding interest not only from local and regional actors, but also from global players. As Iran works to extend its reach to the Mediterranean, Russia, as it has for centuries, strives to exert its influence across the Middle East. The United States, on the other hand, has been signaling a desire to reduce its involvement in the region. Remarkably, China too has become a player. Its increasing presence in the Middle East reflects commercial and strategic motives and signifies its rise as a force competing for global economic and military predominance. China is at once a security challenge and a close economic partner. It is the world’s major rising and disruptive power and plays a huge role in global trade and investment.
Topic:
International Relations, Foreign Policy, Defense Policy, International Trade and Finance, National Security, Science and Technology, Military Spending, Maritime, and Alliance
Political Geography:
Russia, China, Eurasia, Israel, United States of America, and Mediterranean

122. Does Participation in Global Value Chains Increase Productivity? An Analysis of Trade in Value Added Data

Author:
Shujiro Urata and Youngmin Baek
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the impact of global value chain (GVC) participation on productivity by considering both backward and forward participation. Conducting a panel estimation covering 47 countries and 13 manufacturing sectors for 1995–2011, we found that both backward and forward GVC participation contributes to an increase in the productivity of the countries involved in GVCs. In particular, benefits in the form of improved productivity are larger in cases where developing countries procure intermediate goods from developed countries, or backward participation. Our analysis indicates the importance of GVC participation for improving productivity. We argue that, in order for a country to increase GVC participation, an open, free, and transparent trade and foreign direct investment environment (which is provided by regional trade agreements); well-developed soft infrastructure (e.g. educational and legal systems); hard infrastructure (e.g. transportation and communication systems); and the availability of capable human resources are important.
Topic:
International Trade and Finance, Foreign Direct Investment, and Global Value Chains
Political Geography:
Global Focus

123. Processing Trade, Trade Liberalisation, and Opening Up China's Miracle of International Trade

Author:
Miaojie Yu and Huihuang Zhu
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Understanding the role of international trade is the key to understanding China’s miraculous economic growth. This paper reviews the literature on international trade in the context of China, with a focus on processing trade, trade liberalisation, and firmperformance to provide a better understanding of China’s experience of opening up over the past four decades.
Topic:
International Trade and Finance, Economic growth, and Trade Liberalization
Political Geography:
China and Asia

124. Globalisation and Economic Development: Malaysia's Experience

Author:
Cassey Lee
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The economic development of Malaysia has been strongly driven and shaped by globalisation, from the pre-colonial to the post-independence period. The country has harnessed trade, foreign capital, and foreign labour to grow and has transformed its economy from one that was highly dependent on primary commodities (tin and rubber) into one driven by manufactured exports. The impact of globalisation on the Malaysian economy has changed through the various phases of its development experience. The early phases of the country’s engagement with globalisation reduced poverty and inequality. In later stages, excessive dependence on low-skilled foreign labour, although beneficial initially, may have compromised the competitiveness of the economy. Malaysia’s multi-ethnic society has also posed considerable challenges in the balancing of domestic needs and benefits with greater engagement with globalisation. The openness of the Malaysian economy has also made it vulnerable to global economic shocks.
Topic:
Globalization, International Trade and Finance, Inequality, and Economic Development
Political Geography:
Malaysia and Asia

125. Economic Consequences of Globalisation: Case Study of Thailand

Author:
Archanun Kohpaiboon
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The paper reviews empirical works examining the effect of globalisation in Thailand, beginning with a discussion of its integration into the economy. Three drivers of economic globalisation are emphasised: international trade, foreign direct investment, and cross-border labour mobility. The findings point to globalisation’s potential to create a favourable economic impact. Opening up to international trade could promote productivity and drive economic growth. Large foreign direct investment inflows enticed by export-oriented industrialisation are likely to generate horizontal technological spillovers within a given industry; vertical spillovers through the linkages were not a robust result. There is no evidence that employing foreign workers retards firm productivity; rather, the opposite is the case. Well-performing firms are in a position to attract foreign workers and maintain production capacity. Global production sharing (GPS) does not necessarily mean the participating countries are trapped at the low end of the quality ladder. The Thai experience supports the case for further globalising its economy. Any possible side effects of globalisation can be mitigated by other policies such as strengthening the social safety net.
Topic:
Globalization, International Trade and Finance, Labor Issues, and Economic growth
Political Geography:
Asia and Thailand

126. Developing a More Inclusive US Trade Policy at Home and Abroad

Author:
Kimberly Ann Elliott
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
American policymakers have failed to adequately respond to concerns about globalization’s effects and the resulting backlash has taken an ugly turn in recent years. While globalization is only one of many factors contributing to economic dislocation, sluggish wage growth and inequality in the United States, foreigners, and developing countries in particular, are frequently the target of those who are frustrated at being left behind. Yet few realize that US trade policy effectively discriminates against poorer countries. In addition, provisions in trade agreements that tilt the playing field in favor of business interests over those of American consumers and workers also often undermine development priorities in partner countries. American policymakers should rethink the substance and process of trade policy and negotiations to spread the benefits more broadly, at home and abroad.
Topic:
Globalization, International Trade and Finance, Inequality, and Domestic Policy
Political Geography:
United States and North America

127. In Dire Straits? Implications of U.S.-Iran Tensions for the Global Oil Market

Author:
Ilan Goldenberg, Kaleigh Thomas, and Jessica Schwed
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Center for a New American Security
Abstract:
In recent months, Iran has responded to rising tensions with the United States—particularly the US launch of the “maximum pressure” campaign against Iran—by attacking oil tankers and infrastructure in the Persian Gulf region around the Strait of Hormuz (the Strait). These actions have been designed to signal to the United States, the Gulf states, and the international community that the American strategy of strangling Iran economically will not be cost-free, and to Saudi Arabia in particular that it is highly vulnerable to Iranian retaliation. As the Strait of Hormuz is one of the world’s most critical energy chokepoints, the implications of Iran’s efforts merit close scrutiny and analysis. This study was designed to examine three scenarios for military conflict between Iran and the United States and assess the potential impacts on global oil prices—as one specific representation of the immediate economic impact of conflict—as well as broader strategic implications.
Topic:
International Trade and Finance, Oil, and Global Markets
Political Geography:
Iran, Middle East, North America, and United States of America

128. The Missing State Department Memo on US Officials’ Possible Aiding and Abetting Saudi War Crimes

Author:
Oona A. Hathaway
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Legal Challenges, Yale Law School
Abstract:
Today the Senate Foreign Relations Committee is set to consider dueling bills on Saudi Arabia. A bill sponsored by Senator Robert Menendez (D-N.J.), would block arms sales to the Kingdom and in-flight refueling of Saudi aircraft. This largely mirrors a series of measures passed in the House on July 17 to block the sale of billions of dollars of arms to Saudi Arabia and the United Arab Emirates. But in an unusual move, Committee Chairman Jim Risch (R-Idaho) broke comity to put forward his own separate bill focused more narrowly on the killing of journalist Jamal Khashoggi that would merely deny visas to a few Saudi government officials and require that the secretary of state conduct a review of the United States’ relationship with the country. In all likelihood, this is the bill that will advance, allowing the U.S. sales of arms to Saudi Arabia to continue.
Topic:
Foreign Policy, International Law, International Trade and Finance, Arms Trade, and Humanitarian Crisis
Political Geography:
Middle East, Saudi Arabia, North America, and United States of America

129. The Global Exchange (Winter 2018)

Author:
Adam Frost, David J. Bercuson, Stephen Blank, Monica Gattinger, Sarah Goldfeder, Colin Robertson, Hugh Stephens, Laura Dawson, Randolph Mank, Ferry de Kerckhove, Colin Robertson, Andrew Caddell, Robert Hage, David Perry, and Kelly Ogle
Publication Date:
12-2018
Content Type:
Journal Article
Journal:
The Global Exchange
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
During the 1947 Duncan & John Gray Memorial Lecture then-minister of external affairs, Louis St. Laurent, outlined guiding principles for Canada’s engagement with the world. In his address, he recognized that Canada could not maintain the standard of living Canadians had come to enjoy in isolation from the rest of the world. He said, “[we] are dependent on markets abroad for the large quantities of staple products we produce and cannot consume, and we are dependent on supplies from abroad of commodities which are essential to our well-being.” This irrefutably remains true today. Canada’s ability to utilize its vast wealth of resources has afforded it the opportunity to become one of the most affluent and developed nations in the world, making the preservation of such ability of vital national interest. However, trade in the 21st century is more complex than ever before. Technology allows for transactions between parties scattered across the globe to occur near instantaneously, and complicates the tracking and classification of many goods and services. Moreover, global political developments and economic transformation are threatening the liberal world order built and protected by the United States since the Second World War. China’s emergence as an economic juggernaut is shifting the global economic centre of gravity. Furthermore, reactionary domestic political forces within much of the western liberal democratic world, including the United States, question the value of continued support for the status quo. Tectonic change is afoot. In response, Canada is charting its path to navigate the challenges of 21st century global trade. Prime Minister Justin Trudeau’s Liberal government is pursuing a progressive trade agenda as it seeks to modernize existing agreements, implement newly minted agreements, and explore potential future opportunities. The lead package of this issue examines a multiplex of challenges and opportunities presented to those currently crafting Canadian trade policy. Geographically, it spans not only the management of relations with the United States and NAFTA renegotiation, but also the geopolitical considerations of bolstered engagement with Asia and the underappreciated opportunities present in Africa and South America. In addition to "with whom", this package also addresses the "how and why" of trade: the difficulty of adapting trade practices to the digital age and the costs, benefits and limitations of projecting Canadian values via trade relations. In computer simulated and professional chess matches white consistently wins more often than not. The lack of first-mover advantage is a formidable deficit to overcome. Those who are not leading, are fated to play catch-up. The challenges facing Canada’s policy-makers responsible for protecting and advancing our national interest via trade are legion. To optimally address these challenges, Canada is best served by being proactive at the forefront of negotiations. The benefits of cultivating a proactive posture are enticing, and the costs for failing to do so are avoidable. Canada must adapt to the dynamism of the global economic order, or fight to catch-up.
Topic:
Diplomacy, International Trade and Finance, Science and Technology, Infrastructure, Internet, NAFTA, and Trade Policy
Political Geography:
Africa, Japan, Canada, India, Asia, North America, and United States of America

130. Strengthening European Commercial Diplomacy: Prospects and Challenges

Author:
Andrea Maccanico
Publication Date:
12-2018
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The EU is involved in economic diplomacy since the establishment of the Single Market and the ensuing negotiations for trade and economic partnership agreements conducted by the EU’s Directorate-General for Trade (DG Trade) for all EU member states (MSs). European economic diplomacy (EED) is a new EU venture that aims to improve the coordination between EU institutions and MSs in an effort to enhance their economic and trade relations and strengthen their ability to compete with major countries such as the US, China and Russia.
Topic:
International Political Economy, International Trade and Finance, Politics, Governance, Institutions, and Trade
Political Geography:
Europe and European Union