Columbia's Bhagwati: Why the TPP Probably Won't Succeed

The video discusses the shift towards protectionism in Europe and the US, attributing it to poor income distribution and misconceptions about trade. It examines the challenges of the Trans-Pacific Partnership (TPP), highlighting the exclusion of Asian countries and the resulting fragmentation of Asia. The speaker advocates for open regionalism, allowing countries like India and China to join if they lower trade barriers. The video concludes by emphasizing the importance of imports for efficient exports and job creation.

What is one reason the professor gives for the rise of protectionism in Europe?

• Trade agreements are too complex to understand.

• People are looking for simple explanations for complex issues.

• Trade is the main cause of income inequality.

• Protectionism leads to better economic outcomes.

What is a major challenge facing the Trans Pacific Partnership (TPP) according to the professor?

• Exclusion of South American countries.

• Over-reliance on Chinese markets.

• Lack of interest from European countries.

• Misunderstanding of its benefits in the US and Europe.

Why does the professor believe that going South for regional agreements was a mistake?

• Asia was more strategically important.

• The US had stronger ties with Asia.

• South America had better trade barriers.

• South America is not an exciting area for trade.

What does the professor suggest is necessary for countries like India and China to join regional trade agreements?

• They must adopt Western cultural practices.

• They must increase their savings rates.

• They should lower their trade barriers.

• They need to improve their labor laws.

According to the professor, why are imports essential for creating jobs?

• Imports reduce the cost of goods.

• Imports are necessary for efficient exports.

• Imports increase domestic competition.

• Imports lead to better quality products.