Globalization and Trade: A Symposium

The world economy has become more open and integrated in recent years. Countries are more engaged in international trade and the importance of tradables relative to non-tradables in national output is rising everywhere. Capital flows more freely among countries and workers cross borders more readily than ever before. These are some of the changes people have in mind when they talk about the 'internalisation' or 'globalisation' of the world economy. While the general trend toward greater openness is widely acknowledged, there is disagreement on the extent and novelty of these developments. There is also disagreement on whether all this is on balance good or bad - for the world economy and for individual countries and their citizens. In order to explore these issues, the Lowe Institute of Political Economy and the Graduate Institute of International Studies convened a two-day workshop of experts in Claremont in late January 1997. The objective was to assess globalisation in terms of its causes, dimension, and major attributes, and to examine its implications for economic theory, economic measurement, and economic policy. The deliberations of the workshop are summarised in the following pages.