ABSTRACT
Participatory economies will want to benefit from opportunities that international trade and international financial investment make available due to differences in opportunity costs of production and returns on investment in different countries. However, a participatory economy is based on the principle that economic justice demands compensation commensurate with the sacrifices people make, which means the lion’s share of efficiency gains from international trade and investment should go to wherever people’s efforts and sacrifices yield smaller economic benefits on average – that is, to whichever country is poorer or less developed. In Chapter 15 we explain how a participatory economy can engage in both international trade and international financial investment taking both static and dynamic efficiency gains into account, whether the participatory economy is more or less developed compared to an international partner.
