chapter  9
Fundamental Causes: The International Market Economy
WithThomas More Hoban
Pages 9

The years between 1975 and 1995 saw a revolution in the way firms do business. The importance of the “global economy” is symbolized every two years as the leaders of the major trading powers–the G-7–gather to meet and discuss international trade issues. Just as Japan, Singapore, Hong Kong, and China have risen in our consciousness to rival England, France, Italy, and Germany, now Mexico, Brazil, Malaysia, India, and Russia must be considered both as market opportunities and as potential rivals by virtually every manufacturer in the United States. The North American Free Trade Agreement (NAFTA), the General Agreement on Trade and Tariffs (GATT), and a host of less significant trade treaties are now the stuff of everyday newspapers; auto dealers on Main Street are as knowledgeable of international politics and policies as bond traders on Wall Street.