The paper "World Trade Composition, Post Bretton Woods Trade among Nations" is a perfect example of macro and microeconomics coursework. After intense negotiation mainly between the US and Britain concerning the new world monetary system to be adopted, they finally reached a compromise between the overriding interests of the two vectors of the world war. The compromise led to the drafting of the core articles of agreement of the Bretton woods agreement (Hall, Hondroyiannis, & Tavlas, 2009, p. 15). The main objectives of the new system to be adopted were to; Promote international monetary cooperation Creation of employment and rapid growth Maintenance of a stable exchange rate to ensure peace To provide needed funding to correct disequilibria in payments The driving idea behind the revising the monetary system was the need to enable expansion in money supply through international trade and to revive the world economies that had been devastated by the war thereby necessitating the need for multilateral trade solutions to solve economic problems that had affected almost the entire world economy (Johnson, 1965, p. 36).
Since the 1960s, government motives and other economic dynamics have shaped the volume and composition of trade between nations resulting in massive growth in some regions and decline of economic growth in other nations and maintenance of economic status in countries such as the US although it has reduced export volumes in terms of its trade composition (Yilmaz, 2003, p 98).
Since the 1960s, the world trading scene has been defined mostly by bilateral and regional trading agreements aimed at mutually benefitting the member countries after the multilateral platform seemed not feasible. This paper seeks to find out how to trade composition has changed within and between nations and what accounted for the change and what impact it has had internally and globally. It is estimated that the global trade has grown more than 20 times from the 1970s due to the gains achieved by the multilateral, regional and bilateral trade agreement.
This growth has led to improved productivity in countries such as China and South Korea resulting in improved standards of living among it the respective countries citizenry (Czinkota & Moffet, 2009, p. 176, Schnabel, 2010, p. 12). Post Bretton woods trade among nations At the start of the renewed trade among nations after the end of the two world wars, the United States and a host of other economically strong nations in Europe dominated the world trade.
Most of the industrial machinery that was sold in the world came from these global powerhouses that also enjoyed strong currencies that helped them push their agendas whenever there was a multilateral trade agreement to be implemented (Mundell, 1969, p. 78). They would mostly advance an agenda that will benefit their domestic market. Apart from heavy machinery, the U. S and other European countries also supplied washing machines and electronics which were sophisticated in nature and required specialized knowledge which was available only in these economic powerhouses.
These goods were exported to the developing and less developed countries of the world (New, 1992, p. 76) The wealthy and economically superior countries of the world which of course included Great Britain and the US exported manufactured goods to the less developed countries in very large amounts and this is what accelerated the growth of these countries economies as they owned the means of production and the knowledge.
They also exported grains and minerals to the developing nations who really needed these commodities. The developing nations, in turn, exported raw materials and agricultural output to the developed nations as this is what they would be able to manufacture given the infrastructural development in these areas and the level of technology which was very low. However, these less-developed nations would also export simple, manufactured goods such as clothing and leather products. This arrangement to some extent raised the economy of the less developed countries and having the developed nations lose some control of the world trade but they were still in firm control of the global trade through prudent domestic trade policies and agitation of global trade policies to benefit their economies back home (Scott, 2010, p.
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