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This paper uses a global input-output framework to quantify US and EU demand spillovers and the elasticity of world trade to GDP during the global recession of 2008-2009. We find that 20-30 percent of the decline in the US and EU demand was borne by foreign countries, with NAFTA, Emerging Europe, and Asia hit hardest. Allowing demand to change in all countries simultaneously, our framework delivers an elasticity of world trade to GDP of nearly 3. Thus, demand alone can account for 70 percent of the trade collapse. Large changes in demand for durables play an important role in driving these results.
International trade --- Global Financial Crisis, 2008-2009. --- Industrial productivity --- Supply and demand --- Econometric models. --- Global Economic Crisis, 2008-2009 --- Subprime Mortgage Crisis, 2008-2009 --- Financial crises --- Demand and supply --- Industrial production --- Law of supply and demand --- Economics --- Competition --- Exchange --- Overproduction --- Prices --- Value --- Productivity, Industrial --- TFP (Total factor productivity) --- Total factor productivity --- Industrial efficiency --- Production (Economic theory) --- Exports and Imports --- Economic Theory --- Agriculture: Aggregate Supply and Demand Analysis --- Trade: General --- Trade Policy --- International Trade Organizations --- Retail and Wholesale Trade --- e-Commerce --- Economic theory & philosophy --- International economics --- Demand elasticity --- Imports --- Exports --- North American Free Trade Agreement --- Trade in goods --- Elasticity --- Commercial treaties --- Balance of trade --- United States --- E-Commerce
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"As companies increasingly look to the global market for capital, cheaper commodities and labor, and lower production costs, the impact on Mexican and American workers and labor unions is significant. National boundaries and the laws of governments that regulate social relations between laborers and management are less relevant in the era of globalization, rendering ineffective the traditional union strategies of pressuring the state for reform." "Focusing especially on the effects of the North American Free Trade Agreement and the North American Agreement on Labor Cooperation (the first international labor agreement linked to an international trade agreement), Norman Caulfield notes the waning political influence of trade unions and their disunity and divergence on crucial issues such as labor migration and workers' rights. Comparing the labor movement's fortunes in the 1970's with its current weakened condition, Caulfield notes the parallel decline in the United States' hegemonic influence in an increasingly globalized economy. As a result, organized labor has been transformed from organizations that once pressured management and the state for concessions to organizations that now request that workers concede wages, pensions, and health benefits to remain competitive in the global marketplace."--BOOK JACKET.
BUSINESS & ECONOMICS --- Labor --- Industrial relations --- Business & Economics --- Labor & Workers' Economics --- Canada. --- Labor and laboring classes --- Manpower --- Work --- Working class --- Capital and labor --- Employee-employer relations --- Employer-employee relations --- Labor and capital --- Labor-management relations --- Labor relations --- Employees --- Management --- Mexico. --- United States. --- E-books --- North American Free Trade Agreement --- NAFTA --- Tratado Trilateral de Libre Comercio --- TTLC --- Tratado de Libre Comercio en América del Norte --- TLCAN --- Tratado de Libre Comercio de Norteamérica --- Hokubei Jiyū Bōeki Kyōtei --- Acordo Norte-Americano de Livre Comércio --- T.L.C. --- TLC --- Accord de libre-échange nord-américain --- ALENA --- Tratado de Libre Comercio --- Agreement between Canada, the United States of America, and the United Mexican States --- North America --- Canada --- Tratado de Libre Comercio de América del Norte --- United States-Mexico-Canada Agreement
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