Global trade and conflicts of national interest

Author: Ralph Gomory
Publisher:
Publish Date: 2003-04-01
Features: If you combine the world's top mathematicians and economists, the result will surprise you. Gomory and Baumol's book is a perfect example. They offer new interpretations of traditional theories: multiple equilibria can arise under increasing returns to scale, some of which are better than others, and each equilibrium has a different impact on income distribution. Although it is aimed at a broad audience, it is an excellent book that trade professionals cannot afford to miss. In this book, Ralph Gomory and William Baumol apply classical trade models to analyze the modern world economy, a world dominated by manufactured goods, rapid technological change, and large firms that benefit from economies of scale, differing from the traditional agricultural economy characterized by diminishing returns. Gomory and Baumol's analysis shows that in the modern world economy, an increase in a country's production capacity often harms the overall welfare of other countries, and international trade may lead to significant conflicts of interest between trading nations rather than. The authors not only explain why such possible equilibrium outcomes can occur but also demonstrate why, in the current free trade environment, a country's industrial competitiveness may face a fatal threat.