Trade Is Not a Four-Letter Word: How Six Everyday Products Make the Case for Trade

by Fred P. Hochberg

Overview

“A sprightly and clear-eyed testimonial to the value of globalization” (The Wall Street Journal) as seen through six surprising everyday goods—the taco salad, the Honda Odyssey, the banana, the iPhone, the college degree, and the blockbuster HBO series Game of Thrones.

Trade allows us to sell what we produce at home and purchase what we don’t. It lowers prices and gives us greater variety and innovation. Yet understanding our place in the global trade network is rarely simple. Trade has become an easy excuse for struggling economies, a scapegoat for our failures to adapt to a changing world, and—for many Americans on both the right and the left—nothing short of a four-letter word.

But as Fred P. Hochberg reminds us, trade is easier to understand than we commonly think. In Trade Is Not a Four-Letter Word, you’ll learn how NAFTA became a populist punching bag on both sides of the aisle. You’ll learn how Americans can avoid the grim specter of the $10 banana. And you’ll finally discover the truth about whether or not, as President Trump has famously tweeted, “trade wars are good and easy to win.” (Spoiler alert—they aren’t.)

Hochberg debunks common trade myths by pulling back the curtain on six everyday products, each with a surprising story to tell: the taco salad, the Honda Odyssey, the banana, the iPhone, the college degree, and the smash hit HBO series Game of Thrones. Behind these six examples are stories that help explain not only how trade has shaped our lives so far but also how we can use trade to build a better future for our own families, for America, and for the world.

Trade Is Not a Four-Letter Word is the antidote to today’s acronym-laden trade jargon pitched to voters with simple promises that rarely play out so one-dimensionally. Packed with colorful examples and highly digestible explanations, Trade Is Not a Four-Letter Word is “an accessible, necessary book that will increase our understanding of trade and economic policies and the ways in which they impact our daily lives” (Library Journal, starred review).

Product Details

ISBN-13:	9781982127374
Publisher:	Avid Reader Press / Simon & Schuster
Publication date:	01/26/2021
Pages:	336
Sales rank:	208,137
Product dimensions:	5.50(w) x 8.30(h) x 0.90(d)

About the Author

Fred P. Hochberg served as the chairman and president of the Export-Import Bank of the United States under President Obama from 2009 to 2017, becoming the longest-serving chairman in the agency’s history. Hochberg also served for five years as dean at the New School in New York City and has been a fellow at the Institutes of Politics at both the Harvard Kennedy School and the University of Chicago. Previously he served as acting administrator of the Small Business Administration under President Clinton. Before entering public service, Hochberg spent almost two decades leading his family’s direct-marketing business, Lillian Vernon, where he oversaw a forty-fold increase in revenue.

Table of Contents

Introduction ix

Part 1 Clearing the Air

1 The Rockies, the Rockys, and 300 Years of American Trade 3

2 The Giant Sucking Sound 31

3 A Myth-Busting Interlude 58

Part 2 Six Products That Make the Case for Trade

4 The Spice of Life 91

5 The Most American Car on the Road 105

6 The $10 Banana 126

7 How Do You Like Them Apples? 145

8 A Matter of Degrees 164

9 Why Winter Came 183

Part 3 Further Beyond

10 Realities 201

11 Remedies 222

Epilogue 253

Acknowledgments 261

Notes 267

Illustration Credits 283

Index 285

Editorial Reviews

11/11/2019

Hochberg, a former chairman of the Export-Import Bank of the United States, aims to “demystify, debunk, elucidate, and enliven” the issue of global trade in this quip-filled and illuminating debut. He begins with a glossary of economic terms, then sketches the history of American trade before correcting such myths as the assumption that trade deficits matter. Hochberg justifies his pro-trade stance by analyzing commodities including taco salad, which he says demonstrates the importance of global supply chains and the value of consumer variety, and a U.S. education, which he claims has “helped create a pipeline of American values and international friendship with the rest of the world.” Hochberg acknowledges that globalism has resulted in the loss of some American jobs to foreign workers. To mitigate such outsourcing, he advocates a universal basic income, worker retraining programs, and a stronger social safety net. Hochberg hails the “flexible, adaptable work opportunities” created by such companies as Uber and Airbnb without fully addressing the limits of the gig economy, but he balances capitalist cheerleading with an acknowledgment that “trade creates winners and losers.” Lay readers looking to reach a more informed opinion on trade policy would do well to pick up this nuanced and approachable account. (Jan.)

Publishers Weekly

"Trade Is Not a Four-Letter Word is a clear-eyed, informative defense of the importance of free trade. If you’ve ever wondered what makes it possible to enjoy all the products that make daily life possible, this book is for you. And if you haven’t thought about trade, this engaging book will make trade a fascinating subject, one that you never knew you were interested in.” —Indra Nooyi, former CEO of Pepsi-Co

"Written by a uniquely qualified expert, this is a witty, enjoyable book that makes clear the great benefits—but difficult politics and policy choices—of international trade." —Frederick W. Smith, Founder and CEO, FedEx Corporation

“By turns practical and insightful, Fred’s indefatigable spirit, sound judgement, and depth of experience shine through in Trade Is Not a Four-Letter Word. Throughout his unique upbringing and accomplished career, which spanned a period of profound political and economic change, Fred set a standard of leadership and level-headed collaboration while dealing with the complex issues around global trade and the many ways it impacts our day-to-day lives. And these meaningful lessons about trade apply to all of us—in business and in life.” —Jamie Dimon, Chairman & CEO, JP Morgan Chase

"Think a trade war with China and the rest of the world doesn’t impact you? Think again. Fred Hochberg shows how much free trade shapes your everyday life—and what would happen if it disappeared—in this fascinating journey through the trade networks that make our lives possible. It’s the only book on trade you’ll ever need to read." —Ana Navarro, CNN Political Strategist

"Timely [and] engaging." —Financial Times

“A sprightly and clear-eyed testimonial to the value of globalization.” —The Wall Street Journal

“Hochberg has written an expert defense of trade while also explaining the myths that have clouded our understanding of the ways in which trade fits into everyday life . . . . An accessible, necessary book that will increase our understanding of trade and economic policies and the ways in which they impact our daily lives. Highly recommended.” —Library Journal (starred review)

"A rousing, well-argued defense of global trade in a time of isolationist entrenchment.” —Kirkus

"If you want to understand the importance of global trade to a vibrant U.S. economy, read this book!" —David Rubenstein, Co-Executive Chairman, The Carlyle Group

“[A] quip-filled and illuminating debut . . . Lay readers looking to reach a more informed opinion on trade policy would do well to pick up this nuanced and approachable account.” —Publishers Weekly

“At a time when trade is under fierce assault, Fred Hochberg makes a strong and effective case for its importance and value. A timely book with an important message.” —Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies and three-term mayor of New York

"Fred Hochberg knows what he is talking about. As a former Chairman and President of the US Export-Import Bank, he has seen firsthand how trade is mutually beneficial, not a zero-sum game. In this appealing and engaging book, Hochberg makes a compelling case for trade as a driver of global prosperity, innovation, economic resilience, good jobs, and a higher quality of life for billions of people across the globe. I particularly enjoyed his account of how trade helps empower women—seen clearly in the story of his own mother, who became a successful entrepreneur because she was one of the first people to appreciate the benefits of US-China economic links. I highly recommend this book.” —Christine Lagarde, President of the European Central Bank and former Managing Director of the International Monetary Fund

"Fred Hochberg has done something that, while not impossible, is difficult and rare. He has written about world economic realities in a way that is sophisticated and also accessible, serious but also funny and light. From student to business owner—from employee worried about future jobs, to mayors or governors encouraging those future jobs—readers across a broad range will learn a lot from this book." —James Fallows, co-author of Our Towns

"A compelling case that foreign trade is an overall good for the United States . . . Hochberg’s arguments carry the day.” —Crain's Business New York

“Hochberg knows what he is talking about. . . . Free of equivocation and jargon, he explains how trade works in simple and direct language.” —Inside Higher Ed

“A vigorous case for foreign trade in both goods and services . . . [Hochberg] effectively debunks many myths about trade, including the misguided belief that bilateral trade deficits are harmful. His book is an easy and enjoyable read, drawing predominately on American examples but applicable to many other countries, as well.” —Foreign Affairs

From the Publisher

★ 01/01/2020

A cornerstone economic policy of the Trump administration is a reduction of trade while erecting barriers to global trading. To counter that stance, Hochberg, chairman and president of the Export-Import Bank of the United States from 2009–2017, has written an expert defense of trade while also explaining the myths that have clouded our understanding of the ways in which trade fits into everyday life. Hochberg argues that trade has secured the U.S. an eminent position in the world, and generally has improved Americans' lives. He considers how trade affects products such as the avocado, smartphone, and automobile positively and negatively. He also examines soft power products, such as entertainment and education, and perceives these intangible goods as America's greatest exports. The author distills for readers the fact that there will always be winners and losers in trade relationships, but that trade supports a greater good for American society—and this point needs to be better understood. VERDICT Hochberg has written an accessible, necessary book that will increase our understanding of trade and economic policies and the ways in which they impact our daily lives. Highly recommended.—Jacob Sherman, John Peace Lib., Univ. of Texas at San Antonio

Library Journal

2019-10-14
Tariffs be damned: Global trade is a net good, and any consumer should be grateful for it.

Hochberg, former president of the Export-Import Bank, served as CEO of Lillian Vernon Corporation, the firm his mother founded "at our kitchen table." In working there, he writes, he and his family were hot on the heels of Richard Nixon in opening up to China, where, though modernization had yet to hit in 1972, they offered products and materials that were unavailable or much more expensive in the West. Making China a modern villain in the trade wars is misguided, he argues. Granted that "with the largest workforce on the planet, massive state-owned enterprises, and a desire to dominate high-value manufacturing sectors, it took very little time for China to become a formidable competitor for export business"; competition is what it's all about. Hochberg surveys several products and categories to make his case: Everyone like tacos, after all, but the components of tacos alone reflect the interplay of trade, with parts coming from nearly every continent. Just so, many people would be lost without their smartphones, which are made from materials gathered in Africa, designed in the U.S. and Europe, and manufactured in China and other Asian nations. The author digs deeper: Consider that half a century ago, all 50 states found it necessary to pass "lemon laws" to protect consumers from badly made cars; now such things are objects of antiquity given that stiff global competition has made every automaker up its game. There are disincentives aplenty, on the other hand, for "nativizing" trade. One of Hochberg's most pointed examples is the Foxconn plant that will open next year in Wisconsin through the largest subsidy (at about $4 billion) ever given to a firm and at the cost of seizing private property through eminent domain and breaking all sorts of environmental laws "in the hope that this Taiwanese company will prove to be a good bet."

A rousing, well-argued defense of global trade in a time of isolationist entrenchment.

Kirkus Reviews