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A fine history of a squalid episode in American diplomacy

Preparing for law school

An excellent introduction to the American legal systemFriedman is a renowned legal scholar, but this should not scare away the legal neophyte. He has done a remarkable thing for a renowned scholar to do -- he has written an introduction that truly is an introduction! The writing is clear, straightforward, and devoid of all but the most essential legal jargon, and, when the jargon is unavoidable, it is clearly explained. Further, the book is notable for its lack of endless recitation of court decisions. While Friedman disscusses most of the important cases, he does not expect the reader to slog through them. And he is excellent at connecting the cases -- and the law in general -- to real-life events easily within the experience of ordinary people.
If you are already familiar with American law you will probably learn nothing new here. It is, nevertheless, a good, refreshing read. Finally, for those of us that teach in this area, particularly in undergraduate education, this is an excellent teaching book.


Review of "An American Trade Strategy"Lawrence and Schultze, in assessing the different arguments and proposals put forth in regards to the aforementioned central issue of the book, first evaluate the two chief objectives -- improvement in the terms of trade and strategic industrial policy -- and then turn their attention to the various means suggested for their attainment.
Traditional economic analysis suggests that free trade is the best approach to raise global welfare. Given the importance of the US in the global economy, this country's actions are likely to have systemic repercussions. Protectionist policies by the US might prompt other nations into taking defensive and retaliatory actions.
As long as other countries help companies that produce goods America imports, the US gains. But if countries subsidize their exports to third markets or protect domestic firms against US exports, they can lower US living standards.
On the other hand, Dornbusch believes that the informal, mainly nongovernmental, barriers to imports into Japan have biased the terms of trade against the US. He claims that the negotiation of free trade areas with other US trading partners might put pressure on Japan to agree to trade concessions in the form of increasing its imports of US goods. Dornbusch is not explicitly concerned about the specific composition of US exports. Therefore, when he proposes the negotiation of numerical goals for the expansion of imports into Japan, he envisages an aggregate target for manufactured goods.
Tyson contends that some industries are more important than others. She voices two concerns: that market forces left to their own devices will not channel enough resources into the critical high-technology industries, and that the trade and industrial policies of other countries will drive US producers out of these key sectors and thus lower US living standards.
According to Tyson, there are three principal kinds of departures from the scenario of efficiently functioning markets that make some industries ''more equal than others'' and that warrant interventionist policies. One, because of the nature of their products and production processes, some markets are necessarily imperfectly competitive and can generate, for a limited number of firms in the world market, surplus profits (rents) -- profits higher than the necessary to induce investment in the sector. If a country can somehow secure a place for its firms in such markets, it can earn rents -- its capital investments would make more than could be earned in other uses. Two, some industries pay workers surplus (premium) wages, more than their experience and skills could earn elsewhere in the economy. Expansion of those industries will increase real wages and living standards. Three, the production of certain goods creates ripple benefits for the rest of the economy, that is, the benefits to the economy from the production of the goods in question are greater than the revenues earned by the producers.
In recent years the analysis of trade has moved to take into account the widespread reality of imperfect competition. The new trade theories suggest that in imperfectly competitive situations a country may be able to use government intervention to enrich itself at the expense of other nations.
However, the circumstances under which these monopoly-promoting policies might pay off are difficult to detect in practice. They depend on the behavioral features in the market, the degree to which other countries retaliate and the supply response of other firms to the government intervention. Moreover, the government must know the full consequences in the industries from which the resources are drawn. Redirecting scarce resources into a particular sector could produce losses elsewhere in the economy that outweigh the gains in the sector being promoted.
Since the ability of economists to estimate demand and costs' curves with precision is very low, to predict the response of other firms to the market changes induced by government intervention is lower still and to calculate the general equilibrium effects from the drawdown of resources elsewhere in the economy is virtually nil, there is slim chance that the government could know in advance whether any particular policy of subsidy or protection will add to or substract from national income.
Some have advocated using trade policies to enhance employment in sectors with premium wages. If what appear to be rents are in fact payments for skills, abilities or other characteristics of jobs, a governmental policy that subsidized the expansion of these industries could have damaging consequences, for instance, a regresive distributional impact.
The view that some industries provide productivity-enhancing spillover effects to the rest of the US economy lies at the heart of the arguments of many proponents of policies for managed trade. One unresolved problem is how are these industries going to be identified and favored.
Although published ten years ago, this book addresses issues that are still current. Trade policy is a topic that is likely to surface in every presidential and congressional election for years to come. In addition, there are sufficient theoretical concepts thrown around in this tome to make it a good read.


A wealth of information

Excellent, comprehensive history of the Chamorro people!

Good resource

Excellent!

Very comprehensive book

Original, witty, humerous, and highly recommended.