Wednesday, January 31, 2018


Basic industries are the most sensitive and have been the most affected by tariffs. These industries include pig iron, steel production, and steel sheeting which have provoked and continue to provoke the most adverse effect in this industrial sector to date; with high tariffs and ongoing anti-dumping fights at (WTO). In a historical context the American Civil War is probably the most extreme example on the human cost of tariffs.
In economics terms tariffs translate to protectionism by limiting trade between states through methods such as restrictive quotas, and a variety of other government regulations. Protectionist policies harmfully affect consumers, producers and workers in export sectors as both sides,the country implementing protectionist policies, as well as the countries being protected against.
Commonly, tariffs are taxes imposed on imported goods at border crossings and ports of entry. Tariff rates vary according to the kind of goods imported. Import tariffs make costs higher to importers, and increase the price of imported goods to the domestic economy and also lowering the quantity of goods available in order to favor local producers of substandard goods.
After World War II, the stated policy of most First World countries had been to eliminate protectionism through free trade policies enforced by international treaties and organizations such as the World Trade Organization (WTO) and many other regional trade agreements.
History tells us that “In 1732, England slapped heavy duties on American pig iron, and, in a death blow to the hat industry, decreed that hat makers were forbidden to have more than two apprentices each”. In 1750 Britain prohibited Americans from erecting any mill for rolling or slitting iron; William Pitt exclaimed, “It is forbidden to make even a nail for a horseshoe.” The Declaration of Independence denounced King George for “cutting off our trade with all parts of the world.” Many Founding Fathers recognized the corrupt nature of such restrictions. Benjamin Franklin observed, “Most of the statutes or acts, edicts, arrests, and placards of parliaments, princes, and states, for regulating, directing, or restraining trade, have been either political blunders, or jobs obtained by artful men for private advantage, under pretense of public good.”
Tariffs in the New United States
“The first Congress under the Constitution passed a new tariff in 1789 with an ad- valorem rate of 8 percent; the entire tariff code consisted of a single sheet of rates posted at U.S. custom houses.” However, by the 1980′s, the harmonized tariff code would fill two heavy volumes with more than 8,000 different entries.
American Tariffs of Disgrace
The historical record indicates that sugar tariffs were one of the heaviest burdens on American consumers in the 1820′s. Sugar farmers in Louisiana petitioned Washington to maintain the tariff, claiming that they needed government help in their “war with nature” trying to produce sugar in a climate not ideally suited to it.
Wool was one item that received the most attention from early American protectionism. One of the most primitive industries and perverse practices was the distribution of sheep among congressional districts. As a result, by the 1820′s wool cost twice as much in the United States that did in Britain.
In 1828, Congress passed a disgraceful blow tariff that explicitly sacrificed Southern farmers. Northern manufacturers got almost all the benefits of protection, while Southern farmers were forced to pay higher prices for inferior American products and also lost their cotton foreign markets because of retaliation against the United States’ tariff from abroad.
In 1832 Congress upped the tariffs still higher but backdown and lowered the tariffs after South Carolina declared the new tariff unconstitutional, however, the clash alienated the North and South which helped pave the way for the Civil War.
Tariffs and the Civil War
In the 1850s, during a period of low tariffs, it was recognized as the most prosperous era in American economic history to that point. Nonetheless, the Republican Party would soon put an end to such policies. Abraham Lincoln campaigned on a promise to boost tariffs a key factor for winning the presidency in 1860 but provoking tariff agitation that convinced Southerners that they would be sacrificed for Northern industrialists that led to armed conflict.

Tuesday, January 30, 2018

Alfonso Llanes
Alfonso Llanes, I am a Vietnam veteran interested in military history
Ignoramus Trump declared in Davos the end of globalization for his "America First" stand. He favors bilateral treaties so he can bully the weaker party, but multi-lateral treaties like WIPO and TRIPS under WTO protect intellectual property rights for all of its member states which will not be protected by the "territoriality" concept in bilateral treaties. Is America's "Dear Leader" shooting Americans on the foot or does he and his handlers have more sinister plans in store? Moreover, Ignorance, stupidity or creepiness fit all of Trump's self-interest and ill-intended with his chaotic governing behavior and with his power of regression might want to hold globalization and world cooperation hostage to his do over of the many conflicts in history.
The institutions and organizations that Trump would like to dissolve besides the United Nations include long fought business concerns for protecting intellectual property rights in existing globally accepted formats:
INTERNATIONAL CHAMBER OF COMERCE (LC.C.) --NON-CIRCUMVENTION, NON-DISCLOSURE WORKING AGREEMENT—
“This Agreement is valid for any and all transactions between the parties herein and shall be governed by the enforceable laws in Australian Courts, Canada Courts, U.S.A. Courts, UK Courts, Singapore Courts, or under Germany Law in Munich, in the event of dispute, the arbitration laws of Illinois will apply.”
Much has been written about Intellectual Property for the past century in an effort to protect brands, inventors, and artist. It is a frequently used term without any particularly concrete definition for International intellectual property law is a patchwork of multilateral and bilateral agreements and their resulting harmonization of national laws. It has become an increasingly important and frequently litigated area, particularly in the patent, copyright, and trademark arenas.
In the United States we have THE UNIFORM TRADE SECRETS ACT WITH 1985 AMENDMENTS for the protection of intellectual property rights of:
  • Patents. This instrument gives: ”inventors the right to use their product in the marketplace, or to profit by transferring that right to someone else. Depending on the type of invention, patent rights are valid for up to 20 years.”
  • Trademarks. This instrument “protects symbols, names, and slogans used to identify goods and services. The purpose is to avoid confusion, deter misleading advertising, and help consumers distinguish one brand from another.”
  • Copyrights. This instrument “ applies to writings, music, motion pictures, architecture, and other original intellectual and artistic expressions.”
“With respect to the same information, and analysis involving the "reverse engineering" of a lawfully obtained product in order to discover a trade secret is permissible as of May 2013, the UTSA has been enacted by 47 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. As with other Uniform Acts, some states have modified language in their version of the statute. As of May 2013, the UTSA has been adopted by all states except New York, North Carolina (but its law is very similar and seems to borrow heavily from the act, and Massachusetts. On May 2, 2013, Texas enacted Senate Bill 953, becoming the 47th state to adopt the UTSA. The Texas statute took effect on September 1, 2013.”
World Intellectual Property Rights
World Intellectual Property Organization (WIPO along with other forms of intellectual protection in its trend towards globalization has had a direct effect on the harmonization of national intellectual property laws.
The constituent instrument of the World Intellectual Property Organization (WIPO) through the World Trade Organization (WTO), was signed at Stockholm on July 14, 1967, entered into force in 1970 and was amended in 1979. “WIPO is an intergovernmental organization which in 1974 became one of the specialized agencies of the United Nations system. “
The origins of intellectual property protection go back to the 1880’s when the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works provided for the establishment of an "International Bureau". According to the record the two bureaus were united in 1893 and, in 1970, were replaced by the World Intellectual Property Organization, by virtue of the WIPO Convention which outlines what is protected by convention:
– Literary, artistic and scientific works,
– Performances and artists, phonograms, and broadcasts,
– Inventions in all fields of human endeavor,
– Scientific discoveries,
– Industrial designs,
– Trademarks, service marks, and commercial names and designations,
– Protection against unfair competition,
In addition, all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields mainly due to the various bilateral and multilateral treaties are covered. Intellectual property law is one of the most harmonized areas of law. There are differences between the intellectual property laws of individual countries which remain an area not covered by existing treaties. Nonetheless, the prevalent embrace of international treaties, and most national treatment norms now apply to international intellectual property relations. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) includes Trade in Counterfeit Goods. “The TRIPS Agreement is a portion of the Agreement Amending the General Agreement on Tariffs and Trade and Creating the World Trade Organization, which was signed on April 15, 1994, at Marrakesh, Morocco. The TRIPS Agreement, is binding on all WTO member countries, is the most comprehensive and important multilateral intellectual property protection document.”




Non-disclosure agreements (NDA’s) commonly used in business today is the standard format of the:
INTERNATIONAL CHAMBER OF COMERCE (LC.C.) --NON-CIRCUMVENTION, NON-DISCLOSURE WORKING AGREEMENT—
“This Agreement is valid for any and all transactions between the parties herein and shall be governed by the enforceable laws in Australian Courts, Canada Courts, U.S.A. Courts, UK Courts, Singapore Courts, or under Germany Law in Munich, in the event of dispute, the arbitration laws of Illinois will apply.”
Much has been written about Intellectual Property for the past century in an effort to protect brands, inventors, and artist. It is a frequently used term without any particularly concrete definition for International intellectual property law is a patchwork of multilateral and bilateral agreements and their resulting harmonization of national laws. It has become an increasingly important and frequently litigated area, particularly in the patent, copyright, and trademark arenas.
In the United States we have THE UNIFORM TRADE SECRETS ACT WITH 1985 AMENDMENTS for the protection of intellectual property rights of:
  • Patents. This instrument gives: ”inventors the right to use their product in the marketplace, or to profit by transferring that right to someone else. Depending on the type of invention, patent rights are valid for up to 20 years.”
  • Trademarks. This instrument “protects symbols, names, and slogans used to identify goods and services. The purpose is to avoid confusion, deter misleading advertising, and help consumers distinguish one brand from another.”
  • Copyrights. This instrument “ applies to writings, music, motion pictures, architecture, and other original intellectual and artistic expressions.”
“With respect to the same information, and analysis involving the "reverse engineering" of a lawfully obtained product in order to discover a trade secret is permissible as of May 2013, the UTSA has been enacted by 47 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. As with other Uniform Acts, some states have modified language in their version of the statute. As of May 2013, the UTSA has been adopted by all states except New York, North Carolina (but its law is very similar and seems to borrow heavily from the act, and Massachusetts. On May 2, 2013, Texas enacted Senate Bill 953, becoming the 47th state to adopt the UTSA. The Texas statute took effect on September 1, 2013.”
World Intellectual Property Rights
World Intellectual Property Organization (WIPO along with other forms of intellectual protection in its trend towards globalization has had a direct effect on the harmonization of national intellectual property laws.
The constituent instrument of the World Intellectual Property Organization (WIPO) through the World Trade Organization (WTO), was signed at Stockholm on July 14, 1967, entered into force in 1970 and was amended in 1979. “WIPO is an intergovernmental organization which in 1974 became one of the specialized agencies of the United Nations system. “
The origins of intellectual property protection go back to the 1880’s when the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works provided for the establishment of an "International Bureau". According to the record the two bureaus were united in 1893 and, in 1970, were replaced by the World Intellectual Property Organization, by virtue of the WIPO Convention which outlines what is protected by convention:
– Literary, artistic and scientific works,
– Performances and artists, phonograms, and broadcasts,
– Inventions in all fields of human endeavor,
– Scientific discoveries,
– Industrial designs,
– Trademarks, service marks, and commercial names and designations,
– Protection against unfair competition,
In addition, all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields mainly due to the various bilateral and multilateral treaties are covered. Intellectual property law is one of the most harmonized areas of law. There are differences between the intellectual property laws of individual countries which remain an area not covered by existing treaties. Nonetheless, the prevalent embrace of international treaties, and most national treatment norms now apply to international intellectual property relations. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) includes Trade in Counterfeit Goods. “The TRIPS Agreement is a portion of the Agreement Amending the General Agreement on Tariffs and Trade and Creating the World Trade Organization, which was signed on April 15, 1994, at Marrakesh, Morocco. The TRIPS Agreement, is binding on all WTO member countries, is the most comprehensive and important multilateral intellectual property protection document.”
Ignoramus Trump declared in Davos the end of globalization for his "America First" stand. He favors bilateral treaties so he can bully the weaker party, but multi-lateral treaties like WIPO and TRIPS under WTO protect intellectual property rights for all of its member states which will not be protected by the "territoriality" concept in bilateral treaties. Is America's "Dear Leader" shooting Americans on the foot or does he and his handlers have more sinister plans in store? Moreover, Ignorance, stupidity or creepiness fit all of Trump's self-interest and ill-intended with his chaotic governing behavior and with his power of regression might want to hold globalization and world cooperation hostage to his do over of the many conflicts in history.

Monday, January 29, 2018

Alfonso Llanes
Alfonso Llanes, studied at Florida International University
Since its establishment in 1967, the Association of Southeast Asian Nations (ASEAN) has promoted exceptional levels of regional economic, political, and security cooperation. However, the process of regional integration is limited to stressing economic cooperation rather than on establishing an effective method to resolve regional crisis such as the South China Sea issue.
Regional Organizations in the context of the United Nations universality and the responsibility for peace
Recently, Jacob Zuma president of South Africa took advantage of the rotating presidency of the UN’s Security Council and introduced a resolution to stiffen the relationship between the UNSC and regional organizations stating that “Africa must not be a playground for furthering the interests of other regions ever again.”
Francis Fukuyama notes that we live in a world of “multi-lateralism,” while the Trump administration wants to go back to bi-lateralism to bully the weaker party. Many foreign policymakers are struggling to keep up with collective frameworks beyond the United Nations to manage conflict and trade. The UN however, retains its well accepted authority and legitimacy with its universal charter and legally binding Security Council decisions.
The challenge is of course, to ensure that reliance on ad hoc and regional arrangements complement and reinforce, rather than undermine, the UN’s legitimacy and capacity which becomes a pointed conundrum in the wake of African opposition to the Libyan intervention, as many African governments perceived the United States, France, and the United Kingdom fixing UNSC Resolution 1973 into a license for regime change. This scene hardens the determination of the AU long standing principle of “African solutions to African problems”, to become the gatekeeper of military intervention on the continent.
Chapter VIII of the UN Charter identifies the important role of regional organizations, mainly in the areas of peace and security. Nevertheless, it subordinates this function to the higher authority of the UN Security Council. The South African initiative would represent a radical shift of UN policy, toward co-determination of what has been traditionally one of equal partners.
Arguments over adopting universal or regional approaches to manage conflict are nothing new. But by 1945, however, American Multilateralism and UN universalism had definitively been widely accepted principles of national behaviors.
Today, there is a perceived need to include regional organizations to legitimize UN enforcement action and peacekeeping efforts but enlarging the Security Council to include permanent members from the developing world. This is a particularly sensitive issue in Africa, because it is where most UN peace operations are taking place. Many Africans rightfully ask whether the Security Council should be permitted to authorize Chapter VII actions on the continent, without input from the AU.
As a matter of practice the UN and regional organizations are already intertwined in peace enforcement and peace operations efforts. Recent classic UN operations, use a variety of “hybrid” models, where the Security Council authorizes a mission that is implemented by “either an ad hoc coalition (such as the NATO-led Libyan intervention) or a regional organization (as in the AU’s AMISOM mission in Somalia), or some combination of the two”.

Saturday, January 27, 2018

This question previously had details. They are now in a comment.
Alfonso Llanes
Alfonso Llanes, Master Degree in International Development
The International Trade Administration publishes the requirements for IT advisers at this link:
The overall recommendation is of course to get the training needed in a business-oriented degree program that can prepare a trade specialists which might include: business administration, international relations, international finance or global business management, among others.
While any business-related degree can give a student a strong base a specific program concentrated on global or international business may offer the best option as they often join together standard business courses such as ethics, accounting and management with foreign language, business courses dedicated to international business subjects and practices.
Following graduation any aspiring international trade specialists is eligible for entry-level employment, preferably in a field that is related to international business area of their choosing. International trade specialists normally need to have 3-5 years of international trade experience before being qualified for a professional job in the field as reported by the Society for Human Resource.
Earning a master's degree in the field is definitely a better option as the training is more extensive. Graduate programs are available in a variety of areas for instance: global economy, international development and international commerce. Another advantage is that most master's degree programs combine classroom knowledge with on the job training experience that help students develop real-world international business expertise and knowledge of many of the relevant practices and cultural issues.
After formal training certification is not a mandatory requirement for working as an international trade specialist, but it might increase job opportunities since it enhances professional credentials, which separates individuals from the competition on the accreditation of a higher level of professional expertise. One available certification is the Certified International Trade Professional (CITP) which a test-measure of the specialist's knowledge of international marketing, finance, documentation and logistics.
Maintaining the certification requires individuals to renew the certification periodically in order to keep up with changes in regulations, treaties and so on. Renewal guidelines usually include completing an indicated amount of continuing education units (CEUs).
International Trade Consulting
Companies considering outsourcing or selling their products overseas need to evaluate many more choices than in the past and process greater amounts of information for decision making. Cultural barriers and complex compliance regulations make global trade a larger challenge than domestic commerce.
Consulting services need to go beyond mitigating risk and develop a comprehensive understanding of the culture, treaties, and regulations to assess the impact to the business. Most clients require customized assessments regarding difficult compliance and administrative issues facing global enterprises which often becomes a competitive trade advantage due to the ability to rapidly adapt to new requirements that might be imposed by governmental authorities.
Customs-specific knowledge for individual countries can help mitigate risks of trade by developing a firm understanding of international trade issues that may impact a business such as working closely with government agencies to keep up-to-date on any changes or amendments to trade regulations and tariffs.
Tariff Consulting can design business processes so that a company can adapt to changing regulations and tariffs with simplicity in a rapidly evolving international trade landscape. Consultants can help understand bilateral and multilateral trade agreements and the processes involved so that operations can be plan accordingly.
Here is a short list of educational institutions that can help one become an international trade specialist:
Ashford University
Winthrop University
Benedictine University
American InterContinental University
American University
Strayer University
Jack Welch Executive Master of Business Administration
Seton Hall University
George Mason University
Saint John's University
The University of Scranton
Subject areas:
International Business
Business Administration
Operations Management and Analysis
Operations Management
Master of Business Administration
Master of Arts in Economics

Wednesday, January 24, 2018

Alfonso Llanes
Alfonso Llanes, Master Degree in International Development
History of international commerce in general teaches thatTariffs are another form of taxation placed on foreign goods by sovereign governments making imported products more expensive and discourage domestic consumption.
The historical record indicates that tariffs were the first piece of legislation ever enacted by Congress on July 4, 1789 and it had double purpose:
  • To raise revenues for the newly formed government by taxing the importation of foreign goods.
  • To inspire domestic industrial production by taxing the imports of products from foreign sources.
"Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise:"
However, enacted tariffs were not free of controversy. Debates over the drive for tariffs exposed special interests in the process. In the Northeast manufacturers favored high duties to protect its industrial base while Southern states with a mainly agriculture economy wanted a low tariff that would raise cheap consumer imports. As it turned out the final bill got concessions from both sides, but it also delivered benefits to maritime and industrial parts of the country.
“The act established tonnage rates favorable to American carriers by charging them lower cargo fees than those imposed on foreign boats importing similar goods. Coastal trade was reserved exclusively for American flag vessels. These provisions were consistent with mercantilists policies practice by European powers at the time.”
The legislation produced major tensions within the Federalist coalition of northern industrialists and southern farmers. Southern states farmers saw the high tariff and tonnage rates as a victory for the northern industrial base with their successful lobbying efforts of the young government.
After the American Revolution economic reorganization took place which contained a period of uncertainty and hard times for businesses and citizens alike. Investment had been detracted during the conflict from the manufacturing of mainly of weapons of war. The male population had developed skills that were no longer needed in peace time. Prices dropped as a result of diminishing demand which combined negatively with cheaper imports coming from Europe. This resulted in a comparative disadvantage for a nascent manufacturing sector once resumption of normal trade relations took place.
In addition,the British Navigation Acts made things worse. The only significant clause in the treaty of peace of 1783 regarding commercial trade was a guarantee for free navigation of the Mississippi River forever for the United States. “Free trade” between the United States and the British colonies was subjected to the British Navigation Act 1783, which admitted only British-built ships to the ports of the West Indies and imposed heavy tonnage dues on American vessels in other British ports. Furthermore, It was amplified to prevent British registration of American vessels and prohibited imports of American goods through foreign islands.
The French treaty of 1778 stated "perfect equality and reciprocity" in commercial relations, but it was found to be impossible for making a commercial treaty on that basis. On the other hand, Spain demanded as the price for reciprocal trading, surrender by the United States for 25 years the right of navigating in the Mississippi River.
Richard Campanella, at Tulane University writes in his account of: “New Orleans: Timeline of Economic History”
That New Orleans became a “mercantile node after the Louisiana Purchase in 1803, as Americans moved westward and needed a downriver transshipment port to which they could export their agricultural surpluses, and from which new steamboats could return with imports. Vast sugar and cotton plantations near New Orleans, with their insatiable 1840 New Orleans, by one measure, ranks as fourth busiest commercial port in Western world, exceeded only by London, Liverpool, and New York.”
Also included in the historical record of New Orleans are passages of conflict among colonial powers mainly France, Spain and Britain. For instance, in order to pay a war debt, France gave up control of Louisiana to Spain, who controlled the colony from 1763 until 1803. Moreover, the proximity of New Orleans to all of the Spanish colonies in the Gulf of Mexico and the Caribbean provided a significant amount of Spanish influence into the city of New Orleans. The city is located at mouth of the Mississippi River, which spans over 2,348 miles and as such it is the second longest river in the United States. The river became a vital aspect of industry and during the Civil War control of the waterway was a major strategic objective of the Union forces. The mouth of the Mississippi River made New Orleans one of the most significant transportation hubs in the early United States before the establishment of railroad and road systems. The history of the port of New Orleans states that it was one of the greatest ports in the world, with 33 different steamship lines and trade worth 500 million dollars passing through the city. The Civil War interrupted its vital status as a port for export of Southern-produced trade goods with cotton comprising fully half of the estimated $156,000,000 exports, followed by tobacco and sugar.
Campanella says that early in the Civil War, New Orleans became a prime target for the Union Army and Navy to seize control of the city and its vital port, in order to choke a major source of income and supplies for the inexperienced Confederacy.
During its historical period the port of New Orleans, collected taxes (tariffs) from ships leaving or entering its harbor in international commerce attributed in colonial times to either the French, Spanish or British occupiers.

Monday, January 22, 2018


Scholarly, comparative politics concentrates on the study and the effects of political culture, institutions and individual decision-making in different political systems around the world. This field also observes how political practices and organizations vary across counties. Also, the study of the historical record these political processes and structures have gone through over the millennia.
Comparative Politics analyses the political conduct and biases of both political leaders and ordinary citizens. The major areas of study include war and peace, democracy and its structure, dictatorship variants, peaceful and revolutionary regime change as well as economic progress.
As a separate subfield from International Relations, Comparative Politics often traces the domestic origins of foreign policy and the influence of the international system on domestic political actions and consequences.
Study of Comparative Politics
The descriptive analysis of modern political systems, including types of democracies and dictatorships found in Western political structures, Eastern political structures, and the Third World political structures. In general, comparison is made with American institutions and political processes. For instance: the politics of education, human rights, demands for regional autonomy, ethnic conflict and diversity, political violence, demand for welfare services, crises in agriculture, and other topics of relevance.
Study of International Relations
Concentrates on how and why states act as they do in their contemporary international relations. Factors, such as power, war, ideology, governmental organizations, and emerging influences, including supranational organizations, multinational corporations, and natural resource allocation that are analyzed in many cases, using Pareto efficiency for allocation of resources.Conflict and
Conflict Resolution in:
  • Asia
  • America, Western Europe, Australia
  • Africa
  • Latin America
  • Middle East
The history of conflict among nations requires the study of cultural bases for war in group conflict and the biological, economic and its political-history. For example: The conflict resolution of postwar Europe with its emerging politics and policy-making in a comparative perspective. Also, the study of the newly created political institutions such as: the role and conduct of political parties of the European integration including environmental policy, welfare policy, regionalism, and immigration.
Tasks of the State
Many challenges face the state related to human rights and gender issues. Moreover, how growth of non-state actors affects individuals and groups rights are protected in the process. Immigration is today a multifaceted sociopolitical phenomenon that needs much attention specially, in populists’ nations. In our historical past different waves of immigration mainly to the United States emphasized diversity within every immigrant group, as well as differences and similarities regarding their acculturation process and the capacity to incorporate newcomers into civic life.
World Politics
As the world developed and peoples migrated and organized in various forms of societies, group behavior has become another area of study. Theories related to world politics, including dependency, hegemony, geopolitics, regional integration, multi-lateral relation, trans-nationalism, nationalism, and ethnic conflict must be included in the historical study of human organizations and its conflicting ideas.
International Organizations Founded to Discourage Conflict
The role and influence the United Nations has had in international relations in conflict resolution since its foundation in post-world war, has been positive for preventing another world conflagration to date. Other regional international organizations such as the Organization of American States and NATO in addition to many trade blocs are designed to promote human development but also include programs about security, human rights, economic progress, and environmental protection.

Sunday, January 21, 2018


In a recently published paper by Antoine Bouët and David Laborde entitled:
“US Trade Wars with Emerging Countries in the 21st Century Make America and Its Partners Lose Again”
The authors make poignant arguments in a context of the rising protectionist rhetoric by the Trump administration and the impact of trade wars initiated by a change in US trade policies. They consider that such trade wars can hurt developing countries and damage the global trading system without any gains for the United States. They use a static multi-country, multi-sector Armington trade model to evaluate 6 modalities of 3 potential trade wars—for a total of 18 scenarios—between the United States and China, between the United States and Mexico, and between the United States and both China and Mexico. In each case, trade retaliation is analyzed by a Nash equilibrium.
The conclusion of the paper is that “there is no scenario in which the US government benefits its domestic welfare or gross domestic product. The authors think that there may be sectoral gains in value-added in the United States, but they are small and to the detriment of other sectors. Losses for China would be small but potential losses for the Mexican economy are significant.”
There is no doubt that trade relations among nations made a hard turn after the British referendum so called Brexit supporting the departure of the United Kingdom from the European Union took place. Additionally, the election of Donald Trump, may be the seal on the coffin for a step backwards taking protectionist measures particularly threatening China, Mexico, and Germany with import duties. Trump said many times that he would “impose tariffs of 35 percent on Mexican imports and 45 percent on Chinese imports to protect American jobs from unfair foreign competition.” One of his first actions as newly elected President was to sign an executive order withdrawing the United States from the Trans-Pacific Partnership; however, this move was largely theater of the absurd because the deal had not been ratified by the US Congress.
The important fact to consider is that all three countries are members of WTO; the United States and Mexico have been members since the birth of the institution in January 1995. China became a full member in 2001. The two trade relationships--US-China and US-Mexico--are substantial, principally for Mexico, for which the United States represents 81 percent of total exports of goods and 47 percent of total imports.
However Trump doesn’t have a free hand on the issue of imposing tariffs for two important reasons:
1.-Under U.S. law he cannot target the imports of individual companies. Trump's threat, for instance, to impose a border tax on Chevrolet hatchbacks shipped from Mexico would be discriminatory if it applied only to GM.
2.-All three countries are members of WTO and must follow the rules stated in its charter. Therefore, in the absence of NAFTA, the average tariff on Mexican exports to the United States would be 3.7 percent, whereas the average tariff on US exports to Mexico would be 7.4 percent. About 25 percent of US exports would be subject to tariffs above 5 percent. On the other hand under WTO rules, only 15 percent of Mexican exports would be subject to tariffs above 5 percent.
In other words Mexico would have a lot of room to raise tariffs, up to its WTO bound rates of about 35 percent. In contrast, the United States has less room to adjust its tariff rates without breaching WTO rules because Normal Trade Relations (NTR) and/or the Most Favored Nation (MFN) the US tariff rates of about 4 percent are already at their bound rates. Furthermore, the US is China's largest trading partner, accounting for about 20% of China's export market
Under this scenario tariffs would be re-imposed on United States imports and exports. Manufacturing jobs would be exposed in many of the states that elected Trump president. Moreover, global supply chains would be disrupted, making American—Canadian—Mexican industries less competitive with European and Asian companies. A trade war between China and the U.S. represents the biggest risk to the stock market's record rally. Also, it would reduce real incomes around the world by 3.5 percent on average. For numerous U.S. companies, China is their number two market and revenue-generator in global trade. For many others US business, China is already number one, therefore, new barriers that surface from a trade war will have domino effect could devastate American enterprises and have a negative impact on the overall economy.

Saturday, January 20, 2018

According to Viotti & Kauppi (2013) Dependency theory of development is an international relations theory that examines the relationships and interactions often between Global North and Global South states, where the Global South states are often reliance on the Global North for trade.


Others have focused on dependency theory in other ways, as they “describe the ways classes and groups in the ‘core’ link to the ‘periphery’. Underdevelopment and poverty in so many countries is explained as a result of economic, social, and political structures within countries that have been deeply influenced by their international economic relations.”
The global capitalist order in the view of Theotonio Dos Santos (1971) argued that “[Dependency is]…an historical condition which shapes a certain structure of the world economy such that it favors some countries to the detriment of others and links the development possibilities of the subordinate economies…a situation in which the economy of a certain group of countries is conditioned by the development and expansion of another economy, to which their own is subjected.”
Dependency as a system is comprised of twin sets of states in the opinion of Ferrara: described as dominant/dependent, center/periphery or metropolitan/satellite. The dominant states are the advanced industrial nations in the Organization of Economic Cooperation and Development (OECD). The dependent states are those states of Latin America, Asia, and Africa which have low per capita GDP and which rely heavily on the export of a single commodity for foreign exchange earnings.
Both definitions [Ferrara’s and that of Sunkel & Dos Santos] “have in common the assumption that external forces are of singular importance to the economic activities within the dependent states. These external forces include multinational corporations, international commodity markets, foreign assistance, communications, and any other means by which the advanced industrialized countries can represent their economic interests abroad.”
A third definition-theory of dependency in recent times is that all countries must go through development stage were at one time or another are dependent on other countries for needs of technology, capital and know how in order to gain an incremental stage in the process a development.
Historical Precedent of Dependency Theory
Dependency theory has its origin in Karl Marx’s work on economic structuralism and the economic relationships between economically rich and economically poor states.
“Prebisch and his colleagues were troubled by the fact that economic growth in the advanced industrialized countries did not necessarily lead to growth in poorer countries. Indeed, their studies suggested that economic activity in the richer countries often led to serious economic problems in the poorer countries. Such a possibility was not predicted by neoclassical theory, which had assumed that economic growth was beneficial to all (Pareto optimal) even if the benefits were not always equally shared.”
Because of the lack of explanation of this economic imbalance, and economic conditions that arise when the rich states were getting richer, Prebisch looked to explain what was happening. What he initially argued was that “poor countries were sending their raw materials to the Global North, who in turn would turn these into finished products, then sell them back to the poorer states.” The reason he said, is that these products were worth much more as finished goods, than they were as unfinished products. This reliance Prebish—continued— on exports of food and raw materials would inevitably lead to a deterioration of Latin America’s terms of trade, which would further affect its domestic accumulation of capital.
Many authors agree with the problems of development that the Global South states are going through and these issues can be traced to the Post-WWII time period.
International organizations formed soon after the war ended such as the World Bank, the IMF, and the GATT (which is today the World Trade Organization, WTO) were created in assistance of post war Europe and for the development of the world in general. These more recent views take the conversation to another area of discussion into the concept that international trade in a Pareto model will not only allocate resources efficiently but commercial interest among nations will prevent armed conflict.
Alfonso Llanes
Alfonso Llanes, Master Degree in International Development
Historians tell us that between 1500 BC and 300 BC the Phoenicians a Semitic civilization that originated in the Eastern Mediterranean which included the coastline of what is now Lebanon, Israel, Gaza, Syria, and south-west Turkey dominated sea trade in the Mediterranean Sea . Later on some Phoenician colonies reached the Western Mediterranean (Carthage) and then the Atlantic Ocean.
China with its multi-mast sailing junks used to carry over 200 people at around 200 AD. The Southeast Asian mariners, Polynesians, and Northern European Vikings during the same period developed oceangoing vessels. India and Arabia were building the lateen-sail ship known as the dhow that was used on the waters of the Red Sea, Indian Ocean, and Persian Gulf. The Arab Empire expanded a wide trade network across parts of Asia, Africa and Europe.
Another independent group in the historical chronicle, is the Hanseatic League which was composed of an alliance of trading guilds that established a trade monopoly over the Baltic Sea, some of the North Sea, and most of Northern Europe in the Late Middle Ages. Historians generally trace the origins of the League to the foundation of the Northern German town of Lübeck, established in 1158-1159.
Historical records also indicate that the Somali sultanates and republics of Merca, Mogadishu, Barawa, Hobyo and their respective ports flourished with a lucrative foreign commerce. Ships were sailing to and coming from Arabia, India, Italian Venice—a territory of northeastern Italy and western Slovenia between the Alps and the Po River—Persia, Egypt, Portugal and as far away as China.
From the early 15th during the “Age of Discovery” it was a period that continued into the early 17th century, during this time European ships traveled around the world establishing trade routes and forming commercial partnerships to enlarge the rising capitalism in Europe. It is believe that the end of the sailing period took place around the battle of Lepanto in 1571 where Spanish writer Miguel Cervantes de Saavedra, author of Don Quijote de la Mancha, lost the use of his left hand because of a wound suffered fighting in the battle.
With the advantage of the economical steam engines international trade grew at a rapid pace. Later, the internal combustion engine and gas turbine came to replace the steam engine in most ship applications in the 20th century.
Maritime transport can be understood as the navigation over water by boat, ship, sailboat or barge, over oceans, lakes, canals or along rivers. Extensive inland shipping still is very important today with the Mississippi River in the US and the Rhine River in Europe as the major waterways of the world that are integral parts of worldwide economies. Virtually any material can be moved by water; however, water transport can be impractical when material delivery is time-critical. Refrigeration has extended trade of perishable products worldwide as, water transport is highly cost effective with regular scheduled cargoes, such as trans-oceanic shipping of consumer products. Heavy loads of bulk cargoes such as coal, coke, ores or grains as well as liquid bulks like petroleum and its byproducts crisscross the world every day with laden with this valuable cargoes. No doubt that the industrial revolution was aided by cheap water transport in canals, and river navigation, by all types of watercraft that supported cost effective bulk transport to coastal ports.
Starting in the 1970′s containerization of maritime transport revolutionized "General cargo" trade of goods packaged in boxes, cases, pallets, and barrels. Since then, other improvements have been made to the supply chain by connecting ocean shipping with ground transportation (rail or truck) called multi-modal transportation which has added another layer of efficiency to international trade in general in its many dimensions.
Current sources of shipping information and statistics on world shipping can be found in several publications among them:
International Chamber of Shipping Annual Review (yearly publication)
World Shipping Council www.worldshipping.org
International Maritime Organization (IMO) www.imo.org/home
United States Maritime Administration (MARAD) https://www.marad.dot.gov/