The International Trading Order: Free or Managed?

Sven W. Arndt, Claremont McKenna College
Lawrence Bouton


...many are concerned that the international trading order and the international financial system may not be performing their intended functions. With regard to the trading order, questions have arisen about the benefits from freer trade at a time when more countries are turning to managed trade and protectionist sentiment is on the rise. Some believe that the international financial system, for its part, no longer facilitates the transactions of goods but dominates them. This article discusses these issues and addresses the policy options available to government leaders.