Category International Trade and Global Economic Processes
Special Drawing Rights
Reading Time: 3 minutesSpecial Drawing Rights, commonly known as SDRs, are an internationally recognized reserve asset and unit of account created and issued by the International Monetary Fund. SDRs are allocated to IMF member countries in proportion to their IMF quotas and represent a potential claim on the freely usable currencies of IMF members rather than a currency […]
Beggar-Thy-Neighbor Policies
Reading Time: 3 minutesBeggar-thy-neighbor policies are economic strategies adopted by one country to improve its own welfare while imposing costs on other countries. These policies are typically pursued during periods of economic stress, when governments seek to boost domestic output, employment, or competitiveness by shifting economic pressures abroad rather than addressing underlying structural problems at home. The classic […]
Customs Unions
Reading Time: 4 minutesCustoms unions are arrangements among countries in which participating states agree to eliminate tariffs on trade among themselves while adopting a common external tariff on imports from the rest of the world. These two features distinguish customs unions from other forms of regional trade agreements. Free trade areas, for example, remove tariffs among members but […]
Commodity Chains
Reading Time: 4 minutesCommodity chains describe the interconnected set of activities involved in the design, production, distribution, and consumption of goods and services in the global economy. These chains often span multiple countries and regions, linking firms, workers, and institutions through complex networks of economic relationships. Such relationships may include ownership structures, subcontracting arrangements, joint ventures, and strategic […]