Globalization. The word often conjures up an image of a worldwide society--no boundaries, no borders, no barriers. Economically speaking, in a truly borderless world, financial capital, production activities, and labor would flow as easily between countries as they do within a country. But is...

The bilateral trade flows between Canada and the U.S. are the world's largest and have grown rapidly in the 1990s. Are they evidence of a North American trading bloc? A gravity model of trade finds that while economic size and proximity can explain much of the substantial trade between Canada...