GLOBALIZATION, TRADE, AND INCOME

This paper argues that the trends associated with globalization are real, although there is serious debate about what the ultimate causes might be. Second, these trends are probably producing a paradigm shift of the Kuhn sort in the way we think about international trade and international exchange more generally, although at the moment there is no clear front-runner; furthermore the major methodological approaches to traditional questions within the field are changing, including the role of empirical evidence, the use of theory, and the way policy analysis is conducted. Finally, and most importantly, the traditional lines between subfields of economics have been considerably muddied by globalization, which is one reason perhaps the profession has been slow to respond; to understand globalization involves utilization of the theories and methods from a number of applied fields such as labour economics, public finance, monetary economics and industrial organization. -from Author