ABSTRACT
This chapter begins with the theoretical review and the development of subsequent hypotheses concerned with international trade relations (NIC), specifically between the United States and the Pacific Basin newly industrializing countries. It reviews the findings of the individual and composite model analysis of the interdependence, dependence, and mercantilist perspectives. The chapter presents possible directions of future research to advance our understanding regarding international trade relations. A part of the confusion is unmistakably connected to the NICs' success in penetrating the United States (US) market. An increase in NICs' import penetration into the US has coincided with the decline in the US hegemony in the international system. The interdependence model with its emphasis on comparative advantage has the highest explanatory power regarding the NICs’ import penetration. The interdependence model is a microeconomic explanation of international trade. The dependency model focuses on the macroeconomic determinants of international trade, including US dollar exchange, US GNP growth, and US unemployment rates.
