Lecture 10. Goods: Trade: The Ricardian Myth

This is the first of two lectures on trade. The first part is concerned with showing that trade is a power and political relationship and not as usually presented as a benign and neutral transaction. The source of this latter prevailing belief is traced to flaws and an assumption in trade theory as symbolised by the classical trade theorist David Ricardo. A schema of a power model rather than an exchange model is presented. The last part attempts to recount how the concentration of corporations in different sectors and national bilateral trade agreements have undermined the believed liberal trading arrangements. The system then begins to move towards managed trade and the reinsertion of the state and thus to bargaining and politics.

8 slides

1. WTO Director General on Citizens Loss of Confidence in Trade

2. The Politics of Trade

3. Traditional Trade Theory: Comparative Cost

4. A Power Model of Trade Pattern Creation

5. A Power Model of International Trade

6. World Market Shares of Banana Companies

7. Coffee Exporters 1990 - 2000

8. Moving Towards Managed Trade