Article: Goodbye, Free Trade; Hello, Mercantilism.(Next 2008; WORLD ECONOMICS)

Byline: Robert J. Samuelson

As countries grow more interdependent, they're also becoming more nationalistic.

Here's today's quiz. What do the following have in common: (a) Vladimir Putin; (b) China's currency, the renminbi; (c) the U.S.-Peru trade agreement; (d) Hugo Chavez. Answer: they all reflect the "new mercantilism." It's a significant and ominous development affecting the world economy. Even as countries become more economically interdependent, they're also growing more nationalistic. They're adopting policies intended to advance their own economic and political interests at other countries' expense. As practiced until the mid- 19th century, ...

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