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Globalization and International Trade
Globalization and International Trade
Should all
countries be
equally open to
foreign trade?
Percent
10
8.8%
8
7.4%
6.2%
5.9%
5.8%
5.2%
4
3.1%
4.6%
3.3%
3.0%
2.7%
2.1%
0
World
GNP
68
High-income
countries
Exports
East Asia
and the
Pacific
Latin America
and the
Caribbean
South Asia
Sub-Saharan
Africa
Map 12.1
45% or more
35.044.9%
20.034.9%
15.019.9%
No data
Note: The ratio of trade to purchasing power parityadjusted GDP is considered the best available tool for comparing integration with the world economy across countries. But
the use of this tool is complicated by the different shares of the service sector in the economies of different countries. For example, developed countries appear to be less
integrated because a larger share of their output consists of services, a large portion of which are by their nature nontradable.
Over the past 10 years patterns of international trade have been changing in
favor of trade between developed and
developing countries. Developed countries still trade mostly among themselves,
but the share of their exports going to
developing countries grew from 20 percent in 1985 to 22 percent in 1995. At
69
1996
12%
16%
22%
5%
26%
57%
57%
3%
2%
1996
5%
3%
1%
80%
Food
70
8%
4%
2%
3%
83%
Miscellaneous
Manufactured goods
What problems do
transition
countries face as
they join in global
trade?
Note
reasons for the wage and unemployment problems are internal and stem from labor-saving
72