世界經(jīng)濟(jì)概論課件

Lecture1

GlobalizationSomeSimpleFactsAbouttheGlobalEconomyIn2000:WorldTradeTotaled$7.6Trillion.About63,000Multi-NationalCorporations(MNCs)OperateintheGlobalEconomyControllingAbout690,000ForeignAffiliatesEmployingAbout86MillionPeople.ForeignDirectInvestmentTotaled$1.3Trillion.About30CountriesinWesternEurope,NorthAmerica,andAsiaAccountforAbout75%ofthisInternationalEconomicActivity.TheDefinitionofGlobalizationAnincreasinglyinterconnectedworld:Asaresultofveryrapidincreasesintelecommunicationsandcomputer-basedtechnologiesandproducts,adramaticexpansionincross-borderfinancialflowsandwithincountrieshasemerged.Thepacehasbecometrulyremarkable.Thesetechnology-baseddevelopmentshavesoexpandedthebreadthanddepthofmarketsthatgovernments,evenreluctantones,increasinglyhavefelttheyhavehadlittlealternativebuttoderegulateandfreeupinternalcreditandfinancialmarkets.”------AlanGreenspan,keynoteaddressattheCatoInstitute's15thAnnualMonetaryConference,October14,1997.“Drivers”ofGlobalization:

DecliningTradeandInvestmentBarriersGlobalizationofmarketsandproductiontheresultofloweringoftradebarriersenabledbytechnologicalchangeTelecommunicationsµprocessorsHighpower/lowcostcomputingIncreaseininformationprocessingcapacityTheinternetandtheworld-widewebTransportationtechnologyDeregulationofCapitalControlInternationalTradeIndustrialRevolutionGATT-BasedSystemWorldTradeGrowthDistributionofWorldTradeRestoftheWorld12.8%NorthAmerica5.3%Asia/Pacific9.6%EU21.2%6.0%4.4%6.2%6.3%10.7%17%60%ofAllTradeAmongtheAdvancedIndustrializedCountriesTheMultilateralTradeSystem:GATTandtheWTOGATT:GeneralAgreementonTariffsandTrade:Createdin1947.AverageTariffRatesonManufacturedProducts

(%value)

1913 1950 1990 2000France 21 18 5.9 3.9Germany 20 26 5.9 3.9Italy 18 25 5.9 3.9Japan 30 – 5.3 3.9Holland 5 11 5.9 3.9 Sweden 20 9 4.4 3.9Britain – 23 5.9 3.9USA 21 18 5.9 3.9WTO:PromotionofTradeLiberalizationWTO:WorldTradeOrganization:Establishedin1994AnInternationalOrganizationChargedwith:MonitoringCompliancewithrules(includingGATT)ResolvingTradeDisputesFacilitatingTradeNegotiationsGrowthratesofworldindustrialproduction，worldtradeandforeigndirectinvestments,1985---2000

worldindustrialforeigndirectYearproductionworldtradeinvestment19852.40.93.81.213.160.64.115.156.219885.010.412.019893.63.617.719901.69.6-0.61991-0.82.0-24.51992-0.75.67.41993-1.0-1.228.319943.912.210.819953.715.032.719962.42.812.819974.53.223.719980.70.748.219992.42.032.420005.25.5n.a.

PeriodsofprotectionismandfreetradeIntheinternationaldivisionoflabor,periodsofliberalizationandofprotectionismhavealternatedineconomichistory.Thebeginningofthe19thcentury,withtheNapoleonicContinentalBlockadeagainstGreatBritain,wasprotectionist.In1815,theBritishCornLawstookeffect.Intenselydiscussedintheliterature,theselawsaimedatensuringself-sufficiencyinagriculturalgoodsincaseofanotherconflict.Theremainingpartofthefirsthalfofthecenturywasthenmarkedbytheintentionofreducingtradebarriers;theCornLawswereabolishedin1846.Aphaseofliberalizationbegan.UntiltheFirstWorldWarbrokeortin1914,therewasatimeoffreetrade,especiallyintheexchangebetweenGreatBritainanditscoloniesanditsformercolonies;importantcapitalflowswentintothenewlyindependentstatesandthecolonies.Butthecontinentalcountriesalsoreducedtheirtradebarriers,e,g.intheGermanTariffUnion(1834).Thisphaseofliberalizationwasaccompaniedbylargelystablecurrencyconditionsintheframeworkofthegoldstandard.PeriodsofprotectionismandfreetradeWiththeFirstWorldWar,thephaseofintegrationintheworldeconomycametoanend.Thehyper-inflationthathitGermanyandotherEuropeancountriesin1923andtheGreatDepressionstartingin1929seriouslydisruptedtheeconomy.Tariffsandothertradebarriersincreased;the1930ssawdevaluationracesinwhichstatestriedtostimulatetheirexportsbydevaluingtheircurrenciesandthusimprovingtheiremploymentpossibilities(‘beggar-thy-neighborpolicy’).AftertheSecondWorldWar,aframeworkfortheworldeconomywascreatedwiththeGATT(GeneralAgreementonTariffsandTrade)in1948.Basedonthisframework,theinternationaldivisionoflaborcoulddevelopbeneficially,withouttradebarriers.Until1971,thecurrencysystemofBrettonWoodssucceededinkeepingforeigncurrencyratesrelativelystable.TheWorldBankandtheInternationalMonetaryFund,internationalorganizationsthataimedatastrongerintegrationofallcountriesintotheworldeconomy,werecreated.TradepolicyinstrumentsImportdutiesThetariffonimportsprotectsthedomesticimportsubstitutessector,buttheopportunitycostsareconsiderable:Theexportsectorshrinksastheimportsubstitutessectorattractsproductionfactors.Inadynamiceconomy,importprotectionhampersthedevelopmentofexportopportunities.Ifproductionofimportsubstitutesisconcentratedinparticularregionofacountry,protectionagainstimportshampersthedevelopmentprospectsofthisregionorofotherregionsinanumberofways.Furthermore,theincentivestoincreaseefficiencyareweaker.Consumersreachalowerwelfarelevelintheconsumptionpointc’.TradepolicyinstrumentsSubsidiesQuotasVoluntaryexportrestraintsWithanagreementonrestraintsforexports,governmentsagreeonamaximumimportquantity(fromthepointofviewoftheimportingcountry)oramaximumexportquantity(seenfromtheexportingcountry).Exportingcountriesenterexportrestraintsunderthethreatoffacingevenharderentrybarriersfortheirexports.Argumentsfortradepolicyinterventions:protectionofdomesticproductionAutarkyProtectionofestablishedindustriesStretchingstructuralchangeProtectinginfantindustriesArgumentsforpoliticalinterventionsintradeAnti-dumpingItcannotbedeniedthatanexplicitdumpingrepresentsadistortiontotheinternationaldivisionoflabor;consequently,itisprohibitedaccordingtoArticleVIofGATT.Itisequallytrue,however,thatinmanyanti-dumpingcases,protectionistgoalsgaintheupperhand,Anti-dumpingthen,caneasilydevelopintoaprotectionistdivision.Unfortunately,retaliationentailsthedangerthatatradewardevelops.Thiswouldbringalessfavorablewelfaresituationforbothcountries.

Argumentsforinterventionintrade:creatingalevelplayingfieldIndustryandtradeunionsoftheindustrializeddemandaworldwideequalizationofconditionsunderwhichfirms(andlabor)compete(alevelplayingfield),focusingoftenonequalsocialandenvironmentalstandards.Asanexample,demandsarevoicedthatemployeesinnewlyindustrializingcountriesshouldhavethesamesocialconditionsastheircounterpartsintheindustrializedcountries.JustaswagesinChinacannotberaisedtotheGermanlevel,arichindustrializednationdoesnothavetherighttoimposeitssocialstandardsonanewlyindustrializingcountry.Morepowerfularetheargumentsinfavoroffreetrade.Argumentsforinterventionintrade:creatingalevelplayingfieldWelfaregainsfortheworldFreetradeovercomesnationalrestrictions:themorerestrictionsareovercome,themoreleewayforeconomicdecisionsresults,andthiscausesefficiencygains.Welfaregainsforaparticularcountry:allocation-drivengains

1.Allocation-drivengains(orstaticgains)Argumentsforinterventionintrade:creatingalevelplayingfieldThescaleeffect--------Averagecostsfallwithrisingoutput.Factorandresourceinputperunitofoutputdecrease.Theprofiteffect--------Firmshavehigherprofits;nationalwelfarerises.However,tradecanmakemarketscontestable;thisreducesmarketsegmentation.

2.Dynamicwelfaregains

Inthelongrun,thedynamiceffectsoffreetradecanbeconsideredtobemoreimportantthantheeffectsthatcanbeexpectedinacomparative-staticcontext.ThecompetitioneffectFreeexternaltradeensuresintensifiedcompetitionbetweensuppliers.Thedomesticproducershavetofaceuptotheforeignsupply.Thistriggersatendencytocutcost.Competitioncontrolscostandensuresefficiency.Italsoforceseconomicactorstofindneweconomicsolutionsandtodiscovernewproducts.Freetradeisthebestcompetitionpolicy.Argumentsforinterventionintrade:creatingalevelplayingfieldTheinnovationeffectExternaltradestimulatestechnologicalprogress,asthestrengthenedinternationalcompetitioninducesasearchforcheaperproductionpossibilitiesandfornewproducts.TheaccumulationeffectTradeisalsoincentiveforaccumulatingalargerfactorstock.Thisaccumulationeffectholdsforphysicalcapital(includinginfrastructurecapital)andhumancapital.Forinstance,theimportofcapitalgoodsallowsalargerstockofcapital.Theinnovationeffectisanotherformoftheaccumulationeffectbecausealargerknowledgeisaccumulated,enablingproducerstousethegivenproductionfactorsmoreeffectively.AlittlebithistoryofGATTTheGATT(GeneralAgreementonTariffsandTrade)wasfoundedin1948by23countries.In1995itwasfollowedbytheWTO.AtthetimewhentheGATTwasestablished,aftertheprotectionistexperiencesofthe1930s,thegoalwastocreateastableframeworkforinternationaltradeinordertoprovidethepreconditionsforgrowthandanincreaseofprosperity.AsofNovember2001,theWTOhas144members,and30statesareapplyingformembershipamongthemRussia,ChinaandTaiwanhavebeenmemberssincetheDohameeting.FromGATTtoWTORoundsofliberalizationGATTsucceededinthecourseofeightliberalizationroundsinsignificantlycuttingtariffsandreducingotherbarriers.IntheyearsbeforetheGenevaRoundof1947,thetariffsoftheindustrializedcountrieswereashighasabout40percentoftheimportvalue(onaverage).AftertheUruguayRound,theywerebroughtdowntoabout4.3percent.ThefirstfiveGATTroundswereconcentratedontariffcuts.Thelastrounds,allofthemlastingseveralyears,embracednewthemes.TheKennedyRound,forexample,developedananti-dumpingcode,althoughthiswasnotratifiedbytheUS.IntheTokyoRound,aproposalforanewanti-dumpingcodesawdaylight,butanimprovedcodeonsubsidieswasleftaside.Finally,theUruguayRoundextendedtheagendawithnewrulesonservices,intellectualpropertyandpropertyrights,anddisputesettlementprocedure.TheWTO:howitworksDecisionstructureoftheWTOThecentraldecision-makingbody,theministerialconference,isresponsibleforgeneralquestions.TheWTOCouncil,theGeneralDirectorandtheGeneralSecretaryaretheoperativebodies.TheWTOisdifferentfromGATTinseveralrespects.First,memberstateshaveformallyratifiedtheWTOagreements,whereasGATTwassimplysignedbygovernments.Second,GATTdealtonlywithtradeingoods;inaddition,theWTOcoversservicesandintellectualpropertyaswell.Third,thedisputesettlementmechanismismoreeffective.

ThebasicprinciplesofWTO

ThebasicprinciplesliberalizationThesimpleideaofGATT/WTOistoreducetradebarriers.Nationshavetoabstainfromraisingexistingtariffsorfromlevyingnewones.Inaddition,quantitativerestrictionsornon-tariffbarriersareforbidden.Non-discriminationTradepolicymeasuresshouldnotdifferentiatebetweencountries,countriesshouldbetreatedequally.Inparticular,theremustbenotdiscriminationbetweendomesticandforeignproducts.Itshouldnotdiscriminateagainstimports.

Most-favorednationThemost-favored-nationprincipleisanexpressionofthenon-discriminationprinciple(favorone,favorall).Theobligationtowardsageneral,positiveandunconditionalmost-favoredtreatment,whichisincludedinArticleIoftheGATTtreaty,impliesthatatariffreductionthatisgrantedtoonecountryhastobegrantedtoallcountries.Inthiswaybilateraltariffreductionsaremulti-lateralized.ThebasicprinciplesofWTO

---ReciprocityTheprincipleofreciprocityrequiresthatconcessionshavetobegrantedmutually.Thismeansthatatariffcutinonecountryhastocorrespondtoanequivalentcutinanothercountry.---BoundtariffsWhencountriesagreeonreducedtariffs,theybindtheircommitments.Changingthebindingsrequiresnegotiatingwiththetradingpartnersandcompensatingthemforlossoftrade.ThebasicprinciplesofWTOSingleundertakingThesingle-undertakingnatureoftheWTOreflectstheconceptofpackagingthebenefitsarisingindifferentareasoftheinternationaldivisionoflabor.Inprinciple,itcanbeexpectedthatthesingle-undertakingnatureofWTOwillstrengthentherulesystembecauseitforcescountriestoswallowlessfavorablerulesinoneareaiftheyarecompensatedbyrulesallowinghigherbenefitsinotherareas.

TheWTO:howitworksFurtherrulesoftheWTOCountry-of-originversuscountry-of-destinationThecountry-of-originprincipleacceptstheruleofthecountryoforiginwhereasthecountry-of–destinationprincipleleavesittotheimportingcountrytosetthedomesticstandardastheyardstickforitsimports.Moreover,suchregulationscaneasilybecapturedbyinterestgroups.Thegoaloftheworldtradeorderisthereforethatcountriesmutuallyaccepttheregulationsofthecountryoforiginforproductqualityandproductionprocessesinordertominimizetransactioncosts.TheWTO:howitworksNationaltreatmentForservices,theprincipleofnationaltreatmentisapplied.Foreignsuppliershavetobetreatedinthesamewayasdomesticsuppliers.Forservices,thecountry-of-originprinciplehasnotbeenacceptablesofar.Disputesettlement

ThemembercountriesoftheWTOhavevoluntarilyagreedtoadispute-settlementsystem.Ifacountryviolatestherules,theWTOisallowedtodemandachangeinthetradepolicydecisionsandtoimposesanctions.WhereastherulingofaDisputePanelcanbeappealedbeforetheAppellateBody,thedecisionoftheAppellateBodyisbindingunlessallpartiesareagainstitsadoption.TheWTO:howitworksTradepolicyreviewmechanismThetradepolicyreviewmechanismscrutinizesthetradepolicyofeachmemberstateonaregularbasis.Thereportonthefourmajortradingpartners(US,EU,JapanandCanada)areprovidedmorefrequently.Thisreviewisexpectedtoexercisedisciplineonthetradepolicyofmemberstats.NewareasfortheworldtradeorderStrategictradepolicyandsubsidiesFreemarketaccessandnationalregulationOpenservicesmarketsNationaltreatmentinthecaseofperson-embodiedservicesInternationalcompetitionpolicyAggressivetradepolicyversusthemultilateralorderWithitspowerfulinstrument‘Super301’Importrestrictionscanbeimposedandbilateralexport-restrictionagreementscanbepursued.ProtectinghealthandconservingnaturalresourcesConsistencybetweentheinternationalenvironmentalorderandtheinternationaltradeorder

TheWitheringAwayoftheStateAssaultonstatesovereigntyfromabove–supranationalorganizations:NATOEUWTOIMFTheMajorFinancialCrisesofOurTimes:LatinAmericanDebtCrisisof1982ERMCrisisof1992MexicanPesoDevaluationof1994EastAsianCrisisof1997RussianCrisisofAugust1998BrazilCrisisof1999GlobalInequality“Some3billionpeople,halfoftheworld'spopulationliveonthemarginofsubsistence,andthegapbetweentheaverageincomesoftherichestandpoorestcountrieshaswidenedto70:1.”------Secretary-GeneralKofi

AnnaninamessagetotheInternationalConferenceonDevelopment,June24,1999GlobalInequalityiswideningGlobalinequalityiswidening:“Ifwedonothavethecapacitytodealwithsocialemergencies,ifwedonothavelonger-termplansforsolidinstitutions,ifwedonothavegreaterequityandsocialjustice,therewillbenopoliticalstability.Andwithoutpoliticalstability,noamountofmoneywillputtogetherpackageswhichwillgiveusfinancialstability."-JamesWolfensohn,President,TheWorldBankGroup,totheIMF-WorldBankMeetinginWashington,1997Globalization:Doesitcause

ProsperityorImpoverishment?

ImpactofbarrierremovalonjobsandincomesDojobsmoveawayfromwealthyadvancedeconomiesinsearchoflowerwagerates?ImpactoftradeliberalizationonlaborpoliciesandtheenvironmentDomanufacturingfacilitiesmovetodevelopingcountrieswithweakerlaborlawsandenvironmentalprotection?ItsimpactonnationalsovereigntyWTO,EU,UN:supplantingnationalgovernments?Whoisagainstglobalization?

Thosepoliticianswhowantblame“externalcauses”forinternalfailuresoftheirownpolicies,The“politicalleft”whichneedsnewenemiestoexistThosetradeunionswhichcannotcopewithincreasinglyunforgivingandcompetitiveworldoftechnology,educationandresourcecrunch.ThemostcommondemandsofAnti-globalistsNochildlaborNopollutionNodeforestationNoMcWorldsNoHormoneFood

NoAmericanmasssub-culture

PayFairWagesinAsiaProtectDolphinsProtectTurtlesNotExploitWorkersGlobalizationfearsAnoverridingconcernisthatwelfareisnotenhanced,butseriouslyimpaired.Onelineofargumentisthatdevelopingcountrieswilllosebytheinternationaldivisionoflabor.Anotherconcernisthatjobswillbedestroyedintheindustrializedcountries.However,wagesforhumancapitalwillrisetheindustrialcountries.Wagesalsowillrisebecauseofthebenefitfromtrade.Itisfearedthatcountriesfaceadditionalconstraintsthroughtradeandlosemaneuveringspace.Thedeteriorationofenvironmentalquality.Ifcountriesproducemorefortheinternationaldivisionoflabor.Theyalsoproducemorepollutantsandharmtheirenvironment.PossiblesubsidizationofmultinationalstodriveoutdomesticcompetitorsAttackoninfantfirmsRepatriatedprofitsshowupasdebitstocapitalaccountPotentialunfavorableimpact(ontrade/currentaccountbalance)ofmultinationalsimportsThreattonationalsovereignty

ClassTopicsTowhatextentisaglobalmarketintegratedworldwideandtowhatextentisitsegmented?Wheredoesproductiontakeplace?Dowehaveaverticalstructureofproduction?Isthevalued-addedchainofproductionslicedup?Whatarethebackwardandforwardlinkagesofproduction?Towhatextentisproductionseparatedspatiallyfromdemand?Istheindustryverticallyintegrated?Ordomarketsperformtheallocationofproductionandinvestmentdecisions?Whatarefuturetrendsofanindustry?Andwhichmajorfactorsinfluencethesetrends?

Lecture2

RegionalEconomicIntegrationMajorTypesofRegionalEconomicIntegrationFreetradearea

Eliminatestariffswithintheareaonly.Eachcountryretainsitsownpolicytowardsnon-members.Customunion

Addacommonexternalpolicytothefreetradearea.CommonmarketFactorsofproductioncanflowfreelywithinacustomunion.EconomicunionCommonmarketwithcommondeterminationofsomestructuralandmacroeconomicpolicies.

ElementarytheoryofintegrationStaticEffects：Trade-creatingandtrade-diverting

GermanslovetoeatfattyduckswhichtheycouldimportfromFrancefor20DM,orfromHungaryfor17DM.WhenaCommonMarketinagriculturalproduce(CAP)wasintroducedtheyhadadoptedCommonExternalTariff(CET)of20%whichraisedthepriceofHungarianducksto20.5DM.TheydivertedtheirimportfromHungary(nonmember)andcreatedtradewithFrance(memberstate).DynamiceffectsTheexploitationofeconomiesofscaleandincreasedspecialization,intensifiedintra-industrytradeand-inamoregeneralsense-ahighmobilityofbothcapitalandlabor.dynamiceffectsalsostemmingfromanimprovedcompetitivenessoffirms,frominnovation,fromtheaccumulationofcapitalandfromhighergrowth.ThesegainsinefficiencyalsohavepositiveeffectsonthirdcountriesbecauseahigherGDPimpliesanincreasedimportdemand.Empiricalstudieshaveemphasizedtherelativeimportanceofdynamiceffectsincomparisonwithcomparative-staticeffects.Inaddition,thememberstatesareenabletoconcludeanagreementmuchmoreeasily.Forthatreason,regionalintegrationmightberealizedfaster.Furtherbarrierscanbedismantledinthelongrun,whentheregionalintegrationopensitselftoadditionalmembers.Theadvantageofthemultilateralapproachconsistsincreatingasetofrulesthatarelegallybindingnearlyallovertheworld.Forinstance,theworldeconomycouldbesubdividedintothetriadEurope,NorthAmericaandJapan.Uptonow,however,regionalintegrationhasnotledtoimportantformsofseparation.ElementarytheoryofintegrationDoesamultilateralapproachtoliberalizationrepresentafasterandmoresecuretracktowardsfreetradethanaregionalapproach?Theadvantageoftheregionalapproachisthatbarrierstotradearemoreorlesstotallyabolishedwithinapartialareaoftheworld?ElementarytheoryofintegrationInEastAsia,APEChasthegoalofmarketintegrationwithnotendencytowardsprotectionism.Europeanintegrationhasprovedtobeopentonewmembers,anddespitesomeprotectionistmeasurestrade-divertingeffectsunfavorabletotherestofsalt,over-compensatedbyitsgrowth.Indeed,thedangerofanescalatingtradewarbetweentheregionalblocsisstillamatterofimportance.Therefore,itisnecessarytofindmechanismswhichallowamulti-lateralizationofregionalintegration.RegionalintegrationTheAmericas

TheNorthernAmericanFreeTradeAgreement(NAFTA)betweentheUS,CanadaandMexicostartedin1994.Itsaimistoremovetariffsandsubstantiallyreducenon-tariffbarriersoveraperiodof10-15years.Byliberalizingthetradeofgoodsandservices,facilitatingforeigninvestmentandestablishinganeffectivedisputesettlementmechanism,NAFTisexpectedtobecomeanimportantareaofregionalintegrationintheworld.RegionalintegrationATrans-AtlanticFreeTradeArea(TAFTA)isproposedtointegratetheEuropeanUnionandNAFTA.Butinsteadofafree-tradeareaitmaybeattemptedtofirstcreateacommoneconomicarea,inwhichproductionstandardscreatingnon-tariffbarrierswouldlosetheirsignificance,e.g.bymutualrecognitionofstandards.Inthelongrun,thecreationofaso-calledFreeTradeAreaoftheAmerica(FTAA),whichwouldrequireanintegrationofbothNAFTAandMERCOSURandotherLatinAmericancountries,isaimedatreducingbarrierstotradeinthewesternhemislphere.RegionalintegrationAsiaIn1989,theAsia-PacificEconomicCooperation(APEC)wasfoundedinordertoencouragefreetradeamongitsmemberstates,nowcomprisingJapan,China,Australia,NewZealand,SouthKoreaandTaiwanaswellassomeotherfast-growingeconomiesofSouth-EastAsia,theNAFTAmembersandChile.InaccordancewiththeWTOprinciples,APECwantstoreducebarrierstothetradeofgoodsandservices,butthereisnodesiretoestablishacommonexternaltariff(openregionalism).EECEuropeanCoalandSteelCommunity(ECSC)

1952:ThebasisoftheEUbeganwiththesigningofthe

TreatyofParis,establishingtheEuropeanCoalandSteelCommunity(ECSC),toregulateEuropeanindustry&improvecommerce,postWWII.ThesixfoundingstateswereBelgium,France,Germany,Italy,Luxembourg,andTheNetherlands.TreatyofRome

1957:theTreatiesofRomeweresignedbythesixmemberstates,forming:TheEuropeanEconomicCommunity(EEC);TheEuropeanAtomicEnergyCommunity(Euroatom);1967:ECSC,EEC,andEuroatommergedtoformthebasisoftheEC.TheEECasaCustomUnionEliminationofinternaltariffs.Commonexternaltariffsof15percent(members’average).Institutionalizethevirtuouscircleofexport-ledgrowth.Theeliminationoftariffswouldcreatetrade(tradecreation).TheimpositionofexternaltariffswouldreducedependencefromtheUnitedStates,SovietUnion,etc.(tradediversion).TheDevelopmentofEEC1973:theUnitedKingdom,Denmark,andIrelandjoinedtheEC.1981:Greecej