A readily measurable aspect of globalization is the increasing exchange of capital, products and services across national boundaries, spurred by expanded use of container shipping and other technological improvements as well as falling barrier. The interdependence is most apparent with global supply chains, as manufactured goods like vehicles and electronics are assembled with components produced around the world, and it’s increasingly rare for any country to be the sole source of any one complex product. Countries aim to increase exports but worry about too many imports and trade imbalances, even as their consumers pursue low prices. Disagreements on subsidies, tariffs, quotas or unfair practices are debated by the World Trade Organization.

US and China: Grappling Over Economic Rescue – Part II

The two nations must first coordinate stimulus plans, then engage in currency diplomacy
Edward Gresser
February 2, 2009

Is Protectionism Unavoidable?

Political compulsion could overcome economic prudence but coordination among countries may limit damage
Jeffrey E. Garten
February 6, 2009

US and China Must Tame Imbalances Together

The two nations must coordinate fiscal and monetary policy to control the crisis they helped create
Michael Pettis
January 6, 2009