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International Trade: What Everyone Needs to Know
International trade and trade policy have become increasingly important and complex in recent years. In this comprehensive introduction to the key aspects of international trade policy, noted authority Anne O. Krueger explains what has happened and why these issues are so difficult.
With evidence-based analysis and an even-handed approach, International Trade: What Everyone Needs to Know lays the foundation to understand what trade does and does not do. Focusing on the importance of trade in both goods and services, Krueger explores the effects of various trade policies step-by-step and demonstrates why economists generally support free trade. Krueger considers the historical experience, highlighting how technological changes and reduction of trade barriers helped transform the world economy. Tariffs, antidumping and countervailing duties, government procurement policies, preferential trading arrangements, trade with developing countries and emerging markets, and the World Trade Organization are examined. Krueger tackles the fundamental questions surrounding trade including: What are the benefits and costs? What are trade deficits and do they matter? Why do some people favor protectionism and barriers to trade? How does trade policy affect workers?
Written in question-and-answer format, this non-technical introduction to the policies of international trade provides an indispensable guide to one of the most crucial elements of the global economy.
With evidence-based analysis and an even-handed approach, International Trade: What Everyone Needs to Know lays the foundation to understand what trade does and does not do. Focusing on the importance of trade in both goods and services, Krueger explores the effects of various trade policies step-by-step and demonstrates why economists generally support free trade. Krueger considers the historical experience, highlighting how technological changes and reduction of trade barriers helped transform the world economy. Tariffs, antidumping and countervailing duties, government procurement policies, preferential trading arrangements, trade with developing countries and emerging markets, and the World Trade Organization are examined. Krueger tackles the fundamental questions surrounding trade including: What are the benefits and costs? What are trade deficits and do they matter? Why do some people favor protectionism and barriers to trade? How does trade policy affect workers?
Written in question-and-answer format, this non-technical introduction to the policies of international trade provides an indispensable guide to one of the most crucial elements of the global economy.
288 pages, Paperback
Published August 1, 2020
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102 people want to read
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Displaying 1 - 6 of 6 reviews
March 9, 2021
I would need to come back and to write a proper review of this book later. But for now - just a few thoughts. The book is written for the general public. Anne Krueger is a proponent of the free trade. She worked both in academia and in the international institutions. So the book is the result of her knowledge, practical experience. It also introduces some theoretical concepts in the area. It is written as the response to Trump's assault on free trade. So it is an American focus. However, it would be useful to anyone who are interested to understand the issues in the area. It is relevant as we are currently going through the process opposite of globalisation of decoupling some of the global supply chain for the sake of national self-sufficiency and other national interests or just sheer politics. I did not know much about the international trade. And this book was very useful. Though I have to warn that the subject is pretty dry. And it is not Ms Krueger's fault.
Below is 8 lessons she conveys in her book. It is an extract from the summary chapter. All of these topics are dealt with extensively in the text.
Lesson 1. Multilateral rule of law is vital to the global economy. More than seventy years ago, it was recognized that there had to be a rule of law governing international trade.
Lesson 2. Liberalizing trade further will enable more rapid economic growth. Strengthening and deepening trade (and financial) ties has been a hallmark of the international trading system since the Second World War. The reduction of tariffs and virtual elimination of QRs, combined with further drops in costs and duration of transport and communications, has more than doubled the share of trade in global GDP in the postwar years.
Lesson 3. Current account balances are the result of macroeconomic policies. For any country, bilateral trade and current accounts should be positive with some countries and negative with others. Even multilateral balancing of trade does not make sense. For a country’s current account, a deficit or surplus of the multilateral current account can be beneficial or undesirable depending on the underlying macroeconomic factors driving it.
current account deficit because a country has many more profitable investment opportunities than can be financed at current world interest rates from domestic savings, or there can be a deficit because consumption is on an unsustainably high trajectory.
Lesson 4. Bilateral protectionist measures lose a great deal of their hoped-for effectiveness because of third-country effects. It is difficult to overstate the importance of third-country responses to bilateral trade policies. After Trump imposed tariffs on China, Vietnam’s exports to the US rose 40 percent in the next half year and even more rapidly thereafter. It is estimated that other Asian countries have filled at least half the drop in Chinese exports to the US. Mexico
Lesson 6. Protectionist measures have unintended and unanticipated consequences. Total consumption of a protected good may decline enough that domestic production does not even increase; but even if it increases somewhat, the gains in jobs in the protected industry can and often are more than offset by reductions in employment in using industries.
Lesson 7. But for a healthy, growing economy, it is important that policymakers look to the future and find ways to improve the productivity of all rather than look backward and try to slow down new industries and ideas.
Lesson 8. Protection does not create jobs. Trade destroys many fewer than is popularly believed. Protection may slow down the rate of decline of employment in a declining industry but creates many fewer jobs than expected in the protected industry and results in more job losses elsewhere. Many more jobs are lost due to capital deepening and automation than because of trade. Moreover, there is every reason to support workers whose jobs are lost regardless of whether it was trade, capital deepening, poor management, or the introduction of a better product that resulted in job loss. A better social safety net and more assistance to displaced workers without the reference why they find themselves in this position are the most beneficial.
Below is 8 lessons she conveys in her book. It is an extract from the summary chapter. All of these topics are dealt with extensively in the text.
Lesson 1. Multilateral rule of law is vital to the global economy. More than seventy years ago, it was recognized that there had to be a rule of law governing international trade.
Lesson 2. Liberalizing trade further will enable more rapid economic growth. Strengthening and deepening trade (and financial) ties has been a hallmark of the international trading system since the Second World War. The reduction of tariffs and virtual elimination of QRs, combined with further drops in costs and duration of transport and communications, has more than doubled the share of trade in global GDP in the postwar years.
Lesson 3. Current account balances are the result of macroeconomic policies. For any country, bilateral trade and current accounts should be positive with some countries and negative with others. Even multilateral balancing of trade does not make sense. For a country’s current account, a deficit or surplus of the multilateral current account can be beneficial or undesirable depending on the underlying macroeconomic factors driving it.
current account deficit because a country has many more profitable investment opportunities than can be financed at current world interest rates from domestic savings, or there can be a deficit because consumption is on an unsustainably high trajectory.
Lesson 4. Bilateral protectionist measures lose a great deal of their hoped-for effectiveness because of third-country effects. It is difficult to overstate the importance of third-country responses to bilateral trade policies. After Trump imposed tariffs on China, Vietnam’s exports to the US rose 40 percent in the next half year and even more rapidly thereafter. It is estimated that other Asian countries have filled at least half the drop in Chinese exports to the US. Mexico
Lesson 6. Protectionist measures have unintended and unanticipated consequences. Total consumption of a protected good may decline enough that domestic production does not even increase; but even if it increases somewhat, the gains in jobs in the protected industry can and often are more than offset by reductions in employment in using industries.
Lesson 7. But for a healthy, growing economy, it is important that policymakers look to the future and find ways to improve the productivity of all rather than look backward and try to slow down new industries and ideas.
Lesson 8. Protection does not create jobs. Trade destroys many fewer than is popularly believed. Protection may slow down the rate of decline of employment in a declining industry but creates many fewer jobs than expected in the protected industry and results in more job losses elsewhere. Many more jobs are lost due to capital deepening and automation than because of trade. Moreover, there is every reason to support workers whose jobs are lost regardless of whether it was trade, capital deepening, poor management, or the introduction of a better product that resulted in job loss. A better social safety net and more assistance to displaced workers without the reference why they find themselves in this position are the most beneficial.
September 14, 2021
For anyone who does not know much about international trade, it is a good start to read this book.
In the first chapter of her book International Trade, what everyone needs to know, Anne O. Krueger looks at the history of trade relations between various countries. She talks about major institutions and multilateral negotiations, which have influenced international trade over time.
She goes on to explain what the trade policy is and how commerce between nations interconnected is. Standards are important for regulating the economic activity between nations.
Krueger looks at the evolution of trade in the U.S. and explains why trade is good for economic growth. In chapter 5, the author explains why protectionism in trade is wrong. Tariffs are a major form of protection. Other forms of protection are quantitative restrictions and domestic content requirements.
In chapter 6, the author describes that a restrictive trade policy does not help reducing trade deficits. Trade deficits are a result of a nation’s monetary and fiscal policies. In subsequent chapters, Krueger defines how trade creating new jobs and examines the practice of currency manipulation.
Krueger is the proponent of free trade and gives a good theoretical overview of policies affecting trade. The book is mostly focused on American trade policies and is useful for anyone who is seeking to understand major topics in international trade.
In the first chapter of her book International Trade, what everyone needs to know, Anne O. Krueger looks at the history of trade relations between various countries. She talks about major institutions and multilateral negotiations, which have influenced international trade over time.
She goes on to explain what the trade policy is and how commerce between nations interconnected is. Standards are important for regulating the economic activity between nations.
Krueger looks at the evolution of trade in the U.S. and explains why trade is good for economic growth. In chapter 5, the author explains why protectionism in trade is wrong. Tariffs are a major form of protection. Other forms of protection are quantitative restrictions and domestic content requirements.
In chapter 6, the author describes that a restrictive trade policy does not help reducing trade deficits. Trade deficits are a result of a nation’s monetary and fiscal policies. In subsequent chapters, Krueger defines how trade creating new jobs and examines the practice of currency manipulation.
Krueger is the proponent of free trade and gives a good theoretical overview of policies affecting trade. The book is mostly focused on American trade policies and is useful for anyone who is seeking to understand major topics in international trade.
June 4, 2023
My policy is to read three chapters of a book before deciding if the rest is worth my time. I gave this book a second chance, reading six chapters before putting it down for good.
The book isn't terrible, but it fell short of expectations. Part of the problem is the title: this book is really more about why free trade works, according to Anne Krueger. I suspect the publishers knew a book called Why Free Trade Works wouldn't sell, so they went with the generic title instead.
I also can't figure out who the intended audience for this book is. People who are genuinely curious about international trade are in for some disappointment. I am also surprised that the editors gave Krueger's didactic tone a pass: it makes me wonder if they think people who casually read books on trade aren't clever enough to form their own opinions about it.
I have read several books about free trade. In my experience, it tends to be more popular among the think tank types, who spend a lot of time in the office. Krueger is the sort of person who relishes the thought experiment over cold, hard data. Personally, I find the opposite formula more convincing.
The book isn't terrible, but it fell short of expectations. Part of the problem is the title: this book is really more about why free trade works, according to Anne Krueger. I suspect the publishers knew a book called Why Free Trade Works wouldn't sell, so they went with the generic title instead.
I also can't figure out who the intended audience for this book is. People who are genuinely curious about international trade are in for some disappointment. I am also surprised that the editors gave Krueger's didactic tone a pass: it makes me wonder if they think people who casually read books on trade aren't clever enough to form their own opinions about it.
I have read several books about free trade. In my experience, it tends to be more popular among the think tank types, who spend a lot of time in the office. Krueger is the sort of person who relishes the thought experiment over cold, hard data. Personally, I find the opposite formula more convincing.
March 24, 2021
The subtitle is accurate - we all need to know about how international trade affects us personally as well as the world. She gives clear explanations historically and economically why free trade benefits us all and trade wars hurt us all. The US has lost more jobs than it gained in Trump's tariffs on China.
June 18, 2025
Author is biased in favor of free trade and neglects the political rationale behind trade restrictions, yet she takes an academic, lucid, and concise approach to explaining the economic advantages of trade. Krueger clearly disagrees with Trump's trade policy and she articulates her argument well, definitely worth a read for anybody wishing to form their own opinions about trade policy
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September 16, 2022Kruger goes over the basics of not only the history of International Trade but also the modern developments that must be discussed in the coming years.
Displaying 1 - 6 of 6 reviews