Romer: Entered New Phase of Contention in Trade

The video discusses the decline in world trade as a percentage of GDP since 2009, highlighting the shared concerns of the US and China regarding trade relations. It emphasizes the misunderstandings about the WTO system and the need for countries to focus on internal demand. The US perception of unfair trade deals and the differences in economic models between the US and China are also explored, particularly regarding state-owned firms and subsidies.

What has been the trend in world trade as a percentage of GDP since 2009?

• It has fluctuated without a clear trend.

• It has been increasing steadily.

• It has remained constant.

• It has been declining.

What is a key concern shared by both Democrats and Republicans regarding international trade?

• The trade relationship between the US and Europe.

• The trade relationship between Europe and Africa.

• The trade relationship between the US and China.

• The trade relationship between China and India.

What is a major misunderstanding about the WTO system?

• That it only benefits developing countries.

• That it is designed to eliminate all trade barriers.

• That it requires all economies to converge to a single model.

• That it is only concerned with agricultural trade.

Why is President Trump dissatisfied with the WTO?

• He believes it favors European countries.

• He thinks it does not adequately address US concerns.

• He believes it is too lenient on developing countries.

• He feels it is too focused on environmental issues.

What economic model does China prefer according to the discussion?

• A model focused solely on exports.

• A model with state-owned firms and subsidies.

• A model with no state-owned firms and no subsidies.

• A model that eliminates all trade barriers.