The paper "Global Business and Trade" is a good example of a literature review on macro and microeconomics. A global trade regime can be non-cooperative and at times it can be characterized by substantial efforts at global cooperation as Williamson (2011) indicates. Global cooperation in trade matters can be said to be implicit but other times it can take the form of an explicit global trade agreement. In the post-WWII era, the global trade regimes were highly characterized by both sustained and significant attempts to cooperate over trade matters at a multilateral level by way of the voluntary but more explicit global trade agreement.
Fixed exchange rates on a global scale have not been long-lived. During the First World War, the normal operations of what is known as the gold standard were suspended and inflation rates greatly differed across countries. Amsden (2007) asserts that after the war exchange rates were floating and the attempt to restore the gold standard failed. The Bretton woods system that occurred after WWII addressed this problem by way of introducing fixed but more adjustable exchange rates to what was known as a fixed dollar exchange rate system.
Countries pegged their monies to the US dollar. In the two decades after the Second World War, global trade expanded most in the 20th century. Between the years 1948 and 1968, the total volume of merchandise exports from non-communist nations grew by 290%. Additionally, the growth of global trade during this time exceeded the expansion of global output. This paper seeks to discuss how the trade regime that followed WWII differs from the regime that operated throughout the interwar period. It is quite evident that the end of WWII marked the beginning of a new era for the global economy.
Policymakers embraced global trade as necessary for economic growth shifting away from what was known as isolationists’ policies that took place during the interwar period. Within this newly established framework of cooperation, global trade grew rapidly and constantly during the year 1950s to 1960s. In the 1960s, the mean yearly rate of export volumes was more than 8% as Jacks, Meissner & Novy (2011) report. Further, in the 50s and 60s, the growth of international trade reliably outpaced the growth of the global output.
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