Beginning with some fundamental questions about trade and trade-related conflicts,
contradictions, and failures, this article presents a critique of available trade
theories that have so far failed to stand up to the test as regards pro-trade arguments.
Smith-Ricardo trade produces a static, hierarchical world filled with exploitation.
Japan has the structural and cultural strength to break the Ricardian shackles, but
only replicates the inequitable pattern inside the center. The self-reliance model
aimed at equitable relations, but was caught in a static world of mutually isolated
layers. The fourth model of externality cooperation takes a fresh approach in searching
for equitable economic transaction, through dialogue at all levels to identify the
externalities and to agree on cooperative approaches, and through widening concern,
not only guided by selfinterest, but also by other-interest. The result is a trade
pattern that is both dynamic and equitable.
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