Global trade is of vital interest to citizens as well as policymakers, yet it is widely misunderstood. This compact exposition of the market forces underlying international commerce addresses both of these concerned groups, as well as the needs of students and scholars. Although it contains no equations, it is almost mathematical in its elegance, precision, and power of expression. Understanding Global Trade provides a thorough explanation of what shapes the international organization of production and distribution and the resulting trade flows. It reviews the evolution of knowledge in this field from Adam Smith to today as a process of theoretical modeling, accumulation of new empirical data, and then revision of analytical frameworks in response to evidence and changing circumstances. It explains the sources of comparative advantage and how they lead countries to specialize in making products which they then sell to other countries. While foreign trade contributes to the overall welfare of a nation, it also creates winners and losers, and Helpman describes mechanisms through which trade affects a country's income distribution. The book provides a clear and original account of the revolutions in trade theory of the 1980s and the most recent decade. It shows how scholars shifted the analysis of trade flows from the sectoral level to the business-firm level, to elucidate the growing roles of multinational corporations, offshoring, and outsourcing in the international division of labor. Helpman’s explanation of the latest research findings is essential for an understanding of world affairs.

"Trade and the environment" issues have engaged powerful non-governmental organizations in the United States, Europe, and elsewhere. Environmentalists and labor union leaders have been concerned that falling international trade barriers, along with international trade organizations associated with free trade, are undermining environmental protection. In contrast, business leaders and developing-country governments have been concerned that purported environmental regulations may be used as disguised barriers to trade. Those with competing perspectives on these issues have clashed in scholarly journals, the editorial pages of leading newspapers, the halls of government-and in the streets. This is the first book that systematically compares how each of the world's major international trade organizations has been addressing environmental issues. It provides background, up-to-date information, and analysis on the development of trade-environment rules in the World Trade Organization, the European Union, the North American Free Trade Agreement, the Free Trade Area of the Americas, the Asia Pacific Economic Cooperation forum, the International Organization for Standardization, and other key organizations. All of the essays are both policy-oriented and conscious of their theoretical underpinnings. Together they offer a range of realist, liberal, and institutionalist perspectives. The book concludes by suggesting that the treatment of environmental issues in international trade organizations is best explained by understanding the trade and environment interests of the world's most powerful countries.