ABSTRACT
This chapter seeks to offer practical and policy options for an international trade and finance regime that would support sustainable and broad-based global prosperity. It outlines some of the widely recognized practical failures of the current free trade (FT) globalization regime now being pursued. The chapter addresses longer-term goals and principles for international trade and finance, supported by supply and demand model (SDM) and demand and cost model (DCM) analysis, and by the FT and unequal exchange (UE) models of Parts 1 and 2. Though more volatile, from 1985 to 2012, foreign direct investment (FDI) has grown faster than exports, or trade. The most rapidly growing feature of modern economic "globalization" has been non-FDI financial capital flow which swamps not only the value of actual trade and FDI, but the entire world GDP many times over. Some of the capital flow is of course direct borrowing and investing that finances the growing and persistent trade imbalances.
