Question

Brief introduction of new trends in post-war international trade development

Answer 1

The brief trends can be studied as different periods:

Immediate post war period The war had destroyed industries of the European nations. The US emerged as major exporter in this period and enjoyed significant boom.

Intermediate period During this period Europe was rebuilt through Marshall Plan even as the international monetary system shifted to Dollar from the Gold Standard at Bretton Woods. Soon US had huge current account deficit and a Euro-Dollar market developed outside US. In the 1970s Gulf crisis also caused oil price shocks that took US and other developed countries into recession.

Rise of Japan Around 1990s Japan emerged as an exporter of automobiles and electronics on strength of cost and quality.

WTO Another event to change international trade regime was the formation of WTO with Uruguay round.The trade gradually became more rule based with binding agreements.

Rise of China 2000s saw rise of China as a manufacturing power house and became factory of the world through trade.

Dominance of service sector The most recent trend has began with the dominance of service sector enabled through internet. Also China seeing rising wages and higher development stage is shifting to service. It is time for SE Asian countries to take up the manufacturing trade

The pace of globalisation has been interrupted around 2008 by the Great Recession.