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This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the empirical existence of immiserizing growth in the real world.

Theory of revealed preferences has been implemented for welfare movement by using Laspeyres and Paasche quantity index and for empirical estimations, logistic regression has been applied. The study established panel data of the world’s largest trading nations, including the USA, China, France, Germany, UK, Italy, Japan, the Netherland and Canada. Annual time series data for an extensive time period covering from 1981 till 2017 have been used.

Findings of the Laspeyres and Paasche index reveal that out of nine countries immiserizing growth prevails in five nations and those are Italy, Canada, the Netherland, UK and Japan. The results of panel logistic regression verify the significance of terms of trade on immiserizing growth in all included countries. Separate logistic regression has also been performed on all the five countries from which Italy, Canada, the Netherland exhibit significant results.

This study is a pioneer attempt towards the concept of immiserizing growth. Considering the fact that immiserizing growth is viewed by the majority of the scholars as a theoretical notion, this study attempts to investigate analytically the existence of immiserizing growth with real data set. The impact of terms of trade deterioration on the welfare of the world’s largest trading nations has been focused on the research which is in compliance with the concept of Bhagwati (1958).

The appropriateness of retaliatory trade measures in the World Trade Organization dispute settlement process have increasingly come under scrutiny in recent years. Several Members and commentators alike have recommended large-scale amendments to the Dispute Settlement Understanding (DSU) to provide alternatives to retaliatory measures, with the most notable including compensation, collective retaliation, and increased special and differential treatment for developing countries and/or widespread loss of privileges for non-conforming respondents.

Unfortunately, many of the proposals failed to first identify the aims and objectives of the retaliatory phase, or even of dispute settlement more generally. This chapter takes a more holistic approach in its analysis of whether any of the current proposals will improve (or harm) the system. In doing so, this chapter will first assess the effectiveness and appropriateness of retaliatory trade measures by evaluating the goals and objectives in which it is designed to achieve. It will then evaluate some of the more prominent proposals for amending the DSU under the same framework. Taking such an approach will allow for a more comprehensive review and will reveal not only the problems with retaliatory trade measures, but also its positive aspects, and not only the positive aspects of the suggested alternatives but also where they may be detrimental to the system.

The purpose of this paper is to explore the importance to international trade of impediments related to, first, geographic distance, such as freight and other costs related to the movement of physical goods, and second, “psychic distance”, such as the costs and difficulties of transferring and interpreting the information necessary to effect international transactions.

The paper highlights that psychic distance perceptions between countries are not symmetric and that both exporters’ and importers’ perceptions are important. The empirical analysis covers international trade in three categories of goods among 25 major trading nations for the period 1962-2008, employing structural equation modeling, incorporating the mutual interdependence of the distance measures.

Exporters’ perceptions are more important for trade in differentiated products than for standardized goods, which conversely are more strongly influenced by those of importers. Over time, the impact of both types of psychic distance has declined due to the dramatic improvements in communication and information technologies of recent decades. International markets have thereby become increasingly transparent, facilitating the matching of geographically proximate buyers and sellers in order to minimize transportation costs. These changes fundamentally affect the competitive landscape both for firms that seek to market their goods and services internationally and for domestic firms that face new and more intense competition from foreign rivals.

The paper employs simultaneously a statistical methodology novel to the field and – for the first time in the literature – asymmetric measures of psychic distances as perceived by importers and exporters, respectively. Applying the methodology to different categories of goods demonstrates long-term trends in the differential impact of geographic and psychic distances.

We survey several of the theoretical models that have been applied to the analysis of the GATT/WTO dispute settlement process. These include repeated game models, which emphasize the punishment aspect of dispute settlement, and incomplete contracting models, which emphasize the “gap-filling” aspect. Our analysis emphasizes the implications of these models for the strengthening of the dispute settlement process under the WTO and for its application to the TRIPS agreement. We also discuss how models of settlement bargaining can be applied to obtain empirical predictions about which cases will actually proceed to an actual finding by the dispute panel.

The pattern of US–China relations can be analyzed through the two opposite experiences – chilling bitterness and friendly accommodations. For a long time, China was neglected by the United States and treated as an enemy due to ideological considerations. The nature of bilateral relations between Washington and Beijing is a very complex one. The US–China economic relationship has reached a critical juncture. Over the few years, the United States has imposed tariffs of $250 billion worth on Chinese imports, and in return, China also raised high tariffs on US exports. The basic objectives of this research are to investigate the causes and potentiality of China–US bilateral trade. It has used the content analysis method and observation method in this study. The result of the study will be manifested based on recent trade restrictions and economic sanctions to each other. The impact of the recent Sino-American trade war resulted in a negative impact on not only both countries’ economies but also on the world economy.

World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The purpose of this paper is to review China's post‐WTO transition experience, synthesize and update studies on China's pattern of trade and structural transformation, and provide both positive and negative lessons for other developing countries.

The paper has broadly reviewed the latest policy changes after China's WTO accession, and literatures on China's trade and economic development issues in order to understand the Chinese success and its speciality, and draw some useful lessons for both China's decision‐makers and other developing countries.

There are two main findings: first, market liberalization alone is not sufficient, and economic system reform and the liberalization are closely related and complement and promote each other. Second, experimentations via special economic zones (SEZs) and opening to foreign direct investment (FDI), which facilitated and supported cluster development and learning‐by‐doing, are needed for industrial upgrading and export competitiveness.

The paper demonstrates the wisdom of China's simultaneous pursuit of domestic economic system reform, and opening to the international market. However, China has also paid a high social and environmental cost for its rapid growth. It is important for developing countries to have an exclusive, balanced and sustainable strategy in the future development.

Limited participation of least developed countries (LDCs) in the WTO's dispute settlement system has been the focus of intensive debate among WTO scholars, diplomats and, in particular, WTO lawyers. Central to this debate are the major hurdles (financial and political) that LDCs are generally perceived to face in using the existing system of remedies in the WTO system to enforce compliance. Of the two existing compliance enforcement mechanisms, the first – compensation – is often unrealistic because the WTO Member whose measures have been found to be WTO inconsistent has to agree with it; while the second – retaliation (i.e., the suspension of concessions with regard to the non-complying Member) – is a costly and in many ways counter-productive “shooting oneself in the foot” remedy that LDCs in particular can usually ill afford.

This chapter briefly discusses proposals for reform that have been proposed to alleviate these problems. The chapter then reviews two additional instruments that LDCs could pursue to improve their ability to enforce compliance and make the WTO dispute settlement system a more viable instrument: limited use of direct effect; and increased use of the instrument of publicity and public relations, including through civil society. These instruments, whether independently, or in combination with existing mechanisms and other new compliance enforcement measures, could provide useful tools for the WTO's poorest Members to increase the chances for pay-off from WTO litigation and for compliance with WTO law by larger and more powerful trading partners.

Business Management, Global Marketing Strategy, Strategic Management, International Business, International Management.

The case is suitable for undergraduate and post-graduate business and management students. The case is based on secondary data collection and all the facts are real.

The expected learning outcomes include the selection of a foreign market; the determinants of the foreign mode of entry strategy; the process of integrating an internationalization strategy; how to choose the most appropriate partner; and the monitoring of international markets. The case provides a space to think about practice and help learners, therefore, to connect theory and practice.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This paper aims to address the following questions: is good liner shipping connectivity a requisite for merchandise imports plus exports? What is the average of merchandise imports plus exports of the countries neighboring China? Do the merchandise imports plus exports of these countries correspond to each country’s own merchandise imports plus exports or liner shipping connectivity index (LSCI)?

The authors spatially analyze liner shipping connectivity and merchandise imports plus exports using 2016 data and a common framework for linear regression to establish the relationship amongst a country’s LSCI and its merchandise imports plus exports and between its merchandise imports plus exports and those of its neighbors. Merchandise imports plus exports of countries are not necessarily independent of each other, and countries that are contiguous may produce similar observations.

North America and Western Europe comprised clusters of countries that participated more actively in the international trading system, while Africa’s countries had less international trade than average. The study identifies and quantifies the geographical ripple of transport infrastructure on merchandise trade from a national perspective. Notably, a spatially lagged term improved the model’s ability to account for variations in merchandise imports plus exports across countries.

The spatial lag of merchandise imports plus exports can contribute to specifying the spread of merchandise imports plus exports beyond what the authors would anticipate from a country’s network of liner shipping.