International trade adjustments through the margins.

Summary The second wave of globalization, which occurred in the second half of the 20th century, contributed to the increased integration of world economies through the increased exchange of goods and financial assets between nations. In particular, financial openness has contributed to creating new investment opportunities, thus promoting access to finance in both developing and developed economies. At the same time, the dramatic reduction in transportation costs for goods has created new opportunities for the exchange of goods. Overall, this increased dependence of the world's economies contributed to the collapse of the Bretton Woods system, and to the de jure floating of exchange rates, thereby promoting current account adjustment. At the same time, however, it appears that the evolution of world trade is intriguing in several ways.