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Applying a computable general equilibrium model to assess the impact of tariffs between the US and China, Taiwan stands to gain from trade diversion of the trade war between the two largest world economies in the short term.

Initially, Taiwan suffered a minor loss from the sector-specific tariff on steel and aluminum imposed by the US. However, its loss is mitigated after counting counter measures from foreign countries. The cumulated US tariffs and China's retaliations led to trade diversion effect. Taiwan's initial loss from the steel and aluminum tariffs was over compensated by a series of trade war between the US and China.

Under the scenario of the cumulated tariffs of $250 billion of US imports and China's retaliations of $110 billion on US goods, the social welfare, exports, import and trade balance in Taiwan increased. Its terms of trade improved as well. Real wage increases slightly more for unskilled labor than for skilled labor. The short-term effect of the trade war has positive effect on all macro indicators of Taiwan's economy.

On sectoral shift, Taiwan's export will gain the most in precision engineering products ($2,941.6 million), followed by electronics ($310.7 million) and agricultural products ($31.3 million). The negative effects are in sectors such as business services ($58.323 million), other services ($46.9 million), transportation service ($36.6 million), trade service ($25.3 million), and finance service ($24.5 million). Taiwan's total imports will increase by 0.59%, whereas its total export will increase by 0.33%. However, total trade balance still increases by $451.1 million.

The study also finds that Taiwan has a high degree of overlapping export commodities with China in the US market, much higher than most major trading partners for the US, yet its market share for those products in the US is ranged from 1% to 5% only. Moreover, more than 60% of Taiwan's export to the US is in intermediate goods which have less product differentiation than those in final consumption goods. These two factors will provide an opportunity for Taiwan to exploit the US market.

Though the short-term effect of trade war is positive, Taiwan needs to have a long-range planning amid the external shocks. Policy implications for Taiwan are to map out a cosmopolitan view of its geo-strategy by diversifying outward foreign direct investment and trade destinations. It needs to reduce the “systemic risk” of relying on single market in China which is vulnerable to the uncertainty in the US–China relations. If the trade war lasts too long, Taiwan would need to reevaluate its triangular trade-investment nexus with China and the US as well as its role in the global supply chain.

Relationships are socially constructed by companies in interaction. This study explains the dynamic character of business-to-business relationships with the aid of rules theory, a theory borrowed from the communications field. Two forms of rules are identified: constitutive rules guide the interpretation of the other's acts, and regulative rules guide the appropriate response to the interpreted act. Rules theory asserts that companies act as if applying these rules. Relationships provide not only the context in which the parties’ acts are performed but are also the result of such acts. Thus, relationships are potentially reshaped each time one party performs an act and the other party gives meaning to that act and reacts.

The purpose of this chapter is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors and to assess the economy-wide effects of further liberalizing these services trade restrictions, compared with reducing the dispersion in barriers to its merchandise trade. On the basis of a rather restricted sample of services sectors, partial regulatory reform would yield gains roughly equivalent to full unilateral reform of manufacturing tariffs, but roughly one-tenth the gains from full bilateral reform of border protection in agriculture with the European Union. The adjustment costs associated with these services trade reforms would be minimal. The chapter identifies the reasons why the gains from these services reforms are relatively small and argues that a wider set of reforms could provide win-win outcomes and even fewer adjustment costs. By contrast, the gains in agriculture and manufacturing tend to come at the expense of domestic output in the reforming sectors – the gains are greater, but so too are the adjustment costs.

In the Lao People’s Democratic Republic (Lao PRD), the services sector accounts for more than 41% of GDP and more than 80% of total trade (World Bank, 2021). Empirical studies show that most of the services trade occurs in the travel and tourism sectors, accounting for more than 50% of the total services trade in the Lao PDR. The services sector also plays an essential role in the Lao PDR’s wholesale and retail sectors, which employ the most significant number of people across all services sectors. The services trade balance was in a surplus between 1997 and 2011, though in 2012, it entered a significant deficit that continues to the present. This study investigates the link between services trade and economic growth in the Lao PDR, building on a recent analysis of the services trade in various economic and economic growth. The authors use econometric methods such as the autoregressive distributed lag (ARDL) bound test and the Granger causality test to analyze time-series data for the Lao PDR from 1990 to 2019. The econometric results demonstrate the long-run relationship between economic growth and variables related to the services trade. This indicates the government and policymakers of the Lao PDR should invest in infrastructure, particularly in trade facilitation and the liberalization of the services sector, to facilitate the acceleration of economic growth.

Evidences show that the annual total of all incidents along with the number of bombing incidents steadily rose through the late 1970s and began a steady decline in the early 1990s. Before the 1979 takeover of the US embassy in Tehran, the motivation of transnational terrorism was primarily nationalism, separatism, Marxist ideology, and nihilism. The jump in the number of incidents in the early 1980s corresponded to the rise of religious-based fundamentalism. The downward trend in the early 1990s is attributed to the demise of the Soviet Union. A surge in religious fervor and the hostilities in Iraq and Afghanistan account for the prevailing high levels of transnational terrorism. Terrorism surely affects the economy as a whole both in terms of domestic and international trade-related parameters. In this chapter we have used a general equilibrium trade model with special emphasis on terrorism activities to capture the impact of international trade on the production system of the assumed stylized developing economy. In this connection, the presence of defense sector dualism to control or defend the domestic economy has been considered from the perspective of terrorism attack, thereby helping to relate defense, terrorism, and trade within a single framework. Apart from these, the terrorism augmented welfare aspect of the said developing economy has also been introduced in this chapter. Overall, we have claimed that the gains from trade in the presence of terrorism augmented externality exclusively depend on the pattern of trade.

The present chapter throws light on the famous and very important issue of using eco-friendly, pollution free technology, named as ‘green technology’ or ‘green capital’ by developing economies in the sphere of environmental economics by using general equilibrium framework and tries to examine its impact on different polluting and non-polluting sectors of the economy. The present chapter has done so by using the concepts of ‘regime change’ and ‘endogenised green capital’ – these are the unique features of this work. Here, the authors have come across interesting outcomes by encompassing trade liberalisation in the form of international green capital immobility and international green capital mobility and it leads to an expansion of the sector that utilises it.

The concept of Industry 4.0 emerged in Germany in 2011 for the first time causes production processes to be increasingly interconnected and to be more effective owing to its economic and social benefits. The structure of international trade is getting changed due to Industry 4.0. Manufacturing sector is one of the leading sectors in international trade. Manufacturing sector which has remarkable share of exports brings up against significant challenges aiming to competitively design and manage modern products, which are changing and accelerating the complicated multi-domain systems. That producing is more innovatively due to advantages provided by Industry 4.0 impact, positively international trade. The reason is that use of advanced robotic machines and automatization in production process reduces labour costs and thus increases competitiveness of a country in the international markets. The aim of this study is to exhibit a theoretical framework between the digitalization and international trade and to examine how Industry 4.0 impacts international trade in Turkey.