
Free trade advocates say it's an engine of economic growth; opponents think it perpetuates global inequality. But the unintended effects of all that cross-border traffic -- which has nearly quadrupled around the world since 1990 -- may be even more interesting. Here's a look at some of the most surprising conclusions from recent research on trade.
1. Trade makes countries shrink.
Increased
international trade lowers a country's birth rate, in part because it exposes
countries to gender norms that bring women out of the home and into the
workplace.
2. Trade is
less important than marriage.
Facing a
shortage of available wives, Chinese families are increasing their savings
rates to increase their sons' competitiveness in the marriage market. This
drives down China's exchange rate, contributing to a global trade imbalance.
3. Trade
built the ancient civilizations of Mesoamerica.
"Far from
being isolated developmentally, [the cacao trade] integrally tied populations
in the American Southwest to the socio-political and economic activities of
Mesoamerican states."
--Dorothy K. Washburn, William N. Washburn, and Petia A. Shipkova, Journal of Archaeological Science
4. Trade
doesn't turn low-tech countries into high-tech ones.
Despite
hopes that globalization would allow developing countries to innovate
themselves into prosperity, 30 years of increased trade has only brought
steeper and more intransigent gaps between low-tech and high-tech countries,
with the high-tech countries maintaining their edge through specialization that
can take years to match.
5. Trade can
improve your basketball game.
An increase in the number of foreigners playing
in domestic basketball leagues correlates with improved performance for the
national team, even if it's composed only of domestic players.
COMMENTS (3)
SUBJECTS:
















(3)
HIDE COMMENTS LOGIN OR REGISTER REPORT ABUSE