1. This paper explores the international dimensions of the economics of artificial intelligence, including scale, competition, and knowledge creation and diffusion.
2. It discusses policy implications with respect to investments in research, and behind-the-border regulations such as privacy, data localization, standards, and competition.
3. It emphasizes that there is still much to learn before a comprehensive understanding of how AI will affect trade can be achieved.
The article “AI and International Trade” provides an overview of the potential impacts of artificial intelligence on international trade. The article is written by two experts in the field – Avi Goldfarb from Rotman School of Management at University of Toronto and Daniel Trefler from Rotman School of Management at University of Toronto – which lends it credibility. The article does a good job of summarizing the key features of AI with respect to scale, competition, and knowledge creation and diffusion as fundamental to comparative advantage. It also provides an overview of policy implications with respect to investments in research, and behind-the-border regulations such as privacy, data localization, standards, and competition.
However, there are some areas where the article could be improved upon. For example, while it does provide an overview of potential policy implications for AI on international trade, it does not provide any concrete recommendations or solutions for addressing these issues. Additionally, while it does mention China as a focal point for much of the international discussion on AI’s impact on trade, it does not provide any detailed analysis or insights into how Chinese protection has reduced the ability for dynamic U.S firms such as Google and Amazon to penetrate Chinese markets or how Chinese firms may use behind-the-border regulatory asymmetries to penetrate Canadian and U.S markets. Furthermore, while it mentions that AI developments may radically shift the global balance of power in terms of modern warfare capabilities such as guided missile systems becoming overly vulnerable to smart weapons systems; it fails to explore other potential impacts this could have on global power dynamics such as economic or political implications.
In conclusion, while this article provides a good overview on potential impacts AI could have on international trade; more detailed analysis is needed in order to fully understand its implications both domestically within countries as well as internationally between countries.