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The Crucial Role of International Trade in Adaptation to Climate Change

Climate change effects on agricultural yields will be uneven over the world with a few countries, mostly in high latitudes, that may experience gains, while most will see average yield decrease. This paper aims at quantifying the role of international trade in attenuating the effects of climate change by allowing the expression of the new climate-induced pattern of comparative advantages. To do this, we develop a quantitative general equilibrium trade model where the representation of acreage and land use choices is inspired from modern Ricardian trade models but also consistent with theoretical and empirical literature on land use choices. The model is calibrated on spatially explicit information about potential yields before and after climate change coming from the agronomic literature. The results show that the climate-induced yield changes generate large price movements that incentivize adjustments in acreage and trade. The new trade pattern is very different from the current one, ...
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Disappearance of Jamal Khashoggi and effects on trade

I decided to read into the disappearance of the journalist Jamal Khashoggi and how his dissapearance may effect the world trade. In particular that between Saudi and the U.K. The United Kingdom exports over $4 billion worth of goods a year to Saudi and in turn Saudi export nearly $2.4 million a year in goods to the U.K. The main of these UK exports were in heavy goods machinery, arms and automobiles. whereas the majority of imports from Saudi came from the oil. Since the UK no longer is self sufficient on its oil consumption they need to rely more on foreign imports such as that from Saudi. On the other hand, Saudi relies heavily on the UK for their arms machinery as the UK are their second highest provider behind America. However, it is much more of the UK needing good relations with Saudi rather than the other way around. In my opinion Saudi could heavily affect the world market trade because of their impact in the oil industry especially through their exports. If they wanted to th...
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