What are the likely Economic Implications
|
|
- Amber Watson
- 5 years ago
- Views:
Transcription
1 What are the likely Economic Implications of a Rise in Protectionism? Barry Reeves of Sir George Monoux College reviews the concerns if there is a rreat from the principle of global free trade. Exam Board AS Unit A2 Unit AQA 6(15.4) Edexcel 6 OCR 2883 (5.3.4) WEJC 3(G) CCEA 4 Int. Bacc. Standard M ARCH 2007
2 P rotectionism is the imposition of barriers to reduce imports from other nations. There are four main forms: tariffs, quotas, non-tariff barriers and subsidies. Tariffs are taxes imposed on imports as a percentage or a fixed sum per unit and work by making imports dearer than home produced goods. Quotas are fixed limits on the amount of imports, by quantity or value. These are certain in their effects and defendable where a small annual increase in the quota allows a steady rundown of an old industry giving time for resources to leave gradually to higher value sectors (the suns or senile industry argument for temporary protectionism). Non-tariff barriers (ntbs) are hidden and administrative controls, possibly spurious health and safy reasons when the real aim is to reduce imports. Finally subsidies are trade barriers as they distort free trade as domestic suppliers gain a cost advantage not based on efficiency. Economic theory argues strongly for free trade as it allows each country to specialise where it has the greatest efficiency and advantage over others, not just a simple advantage. This is the principle of comparative advantage. Comparative advantage increases world output and living standards and it reduces monopoly power as firms face compition from abroad. In contrast protectionism endangers comparative advantage and reduces world output as fewer countries can specialise where they have the greatest efficiency. Instead they concentrate resources where value and productivity is low. From free trade principles broadly speaking we should welcome the latest phase of globalisation the rise of many newly industrialising nations. Their wave of cheap imports helps to lower our inflation and in turn allows us to have lower interest rates and still me our inflation targs. The opportunity to export to rich marks has produced economic growth and rising living standards for the world s poor and cheaper imports of textiles, toys and electrical goods for us. Rising protectionism would, on the other hand, tend to increase our inflation and therefore need higher interest rates and higher unemployment rates to control inflation if cheaper imports are not allowed to do the job. The rise of China, India, South East Asia, Turkey and elsewhere have brought trade benefits to us all but these multiple benefits are threatened now by growing calls for protectionism from the Developed countries. If we are concerned to end poverty, for instance the 400 million lifted out of poverty by China s growth alone, and if we gain from comparative advantage, why do we impose tariffs and quotas? Quite simply it is because governments react to self-interested pressure groups as well as media induced concerns. Exports from low wage countries are seen as unfair compition. Farmers and textile manufacturers and steel lead the campaign for protectionism. The US imposed high steel tariffs in 2002 and gives millions of dollars to defend 25,000 American cotton farmers replacing the livelihood of 10 million American cotton farmers, like these in Arizona, are protected to the driment of poor African farmers. very poor African farmers who can produce at a lower cost. Europe tightened quotas on clothing and underwear imports in 2005 (bra wars) and 20 anti China protectionist bills have been put to the US Congress in the last few years. The huge US trade deficit is now partly financed by Chinese funds of $200bn a year. If the current US housing slowdown causes a drop in consumer confidence then world slowdown or recession could follow and we will see a rise in protectionist sentiments. Thus free trade faces dangers and we now examine these. We can identify three levels of concern from greater protectionism. Firstly, the standard textbook analysis M ARCH 2007
3 Pw+t Pw 0 A D G E B F that protectionism damages free trade and comparative advantage, mainly affects the supply side. The second concern relates to damage to world aggregate demand and finally, the harm to the world s developing economies and their poor. We now consider these in turn. Protectionism and Free Trade Principles Recent protectionist actions have included extra EU or US tariffs and subsidies and then raliation bween the two super economies. Billions of Euros have been poured into European Airbus so it could compe with Boeing. The US increased farm subsidies and s tariffs against steel imports in Each time minor, and not very damaging, trade skirmishes with the EU followed. However this protectionism is of little importance compared to the extremely damaging impact a tide of protectionism would have on the development of the poorest countries. The illogical consequences of protectionism is clear when we look at EU and US taxpayers and consumers paying billions for costly farm subsidies for fixing agricultural prices. Developing countries have factor abundance in land and labour and so can supply us cheaply and save us the more than 3 extra per person that EU food costs compared to buying it on open world marks. There is also a high opportunity cost of state money being diverted from bter alternatives for example healthcare or dealing with global warming. There is increasing hidden protectionism. The US has declared a concession Figure 1: The Impact of a Tariff H C Sd (Domestic Supply) World Price + Tariff World Price Dd (Domestic Demand) of no trade restrictions on 97% of the categories of possible exports from developing countries at the WTO (World Trade Organisation, s up to reduce trade barriers). In reality the poor countries are free to export the 97% of goods they find it impossible to produce like aerospace. The 3% remaining they are prevented from exporting are sensitive products especially textiles and food, the very things they have a comparative advantage in. In these ways we prevent the poor world exporting their way out of poverty and trap ourselves in low value industries. We give up our comparative advantage and we lose productive efficiency by overprotecting our firms and large monopolies behind tariff walls. Economic growth and living standards suffer in all countries. Britain is in a bter position than some to cope with cheap imports, ironically because we have deindustrialised faster than our rivals! We now have little left of textiles, shoes or toy manufacturing and have moved resources into high value services and manufacturing. However most of the feared imports are manufactured goods and it will be the unskilled work in Britain and other developed countries that is most at risk from unrestrained free trade. The best answer is training so workers can find employment in services and other skilled industries that will remain compitive. Financial services, cultural and knowledge based industries, chemicals, pharmaceuticals and aerospace remain our strength and with our supply side reforms and efficient demand management we should suffer less job losses or danger of prolonged structural unemployment from cheap manufactured imports. The more southerly EU nations like France, Italy, and Portugal have more to fear with larger, old and low value sectors like farming, textiles, shoes and leather goods. But by limiting imports southern Europe will limit its growth if it fails to shift out of old industries and into the new. The UK s main problem, like the US until recently, is our strong currency. To enable more of our industries to compe and exploit their comparative advantage and for UK manufacturing to recover, the UK needs a lower currency. US exports have already risen strongly after the dollar depreciated. Currency adjustment is preferable to protectionism for the world economy as currency adjustments strengthen the role of comparative advantage and increase world output rather than distort and weaken trade and specialisation as tariffs and quotas do. The UK, with low unemployment, supply side efficiency and little desire for protectionism encourages the growth of hi-tech industries and financial services in the City, now the world s top financial centre. The EU however fights to keep too many workers growing wheat and maize and making shirts with high opportunity cost of high value goods foregone that could be traded abroad to buy much more food and textiles from poorer regions. There is a cost for protectionism of old industries in the developed world as there is a cost of adjustment including some short run unemployment. However to try to freeze a country s outdated industrial structures merely builds up pressures for change and dangers of a crisis later. Temporary protection to allow long run supply side reforms and structural adjustment is bter. We can see the distributional effects of a tariff on consumer welfare and producers on a simple diagram. Consumer surplus (the difference bween the price consumers would be prepared to pay and the price they have to pay) is shown in Figure 1 by ABC at the pre-tariff world price (Pw). At the tariff price Pw+t, consumer surplus falls to the area ADE, so consumers lose welfare of DECB. Correspondingly the producer surplus improves from OBF to ODG as it is the difference bween the price at which they are happy to sell shown by their supply curve and the actual higher price they gain, which now rises after the tariff. Rising protection- 8 M ARCH 2007
4 ism would hurt consumer real income and welfare through higher prices but increase producer profits. Possible Demand Side Effects Protectionism threatens the world s circular flow of income. Country A may protect jobs by a tariff on goods from Country B, but this shifts unemployment to B which then gs a second wave of unemployment as the multiplier effects from falling exports spreads through their economy. The 1930s depression became deeper and more prolonged because of these beggar my neighbour policies. The 1930s trade wars destroyed industries and brought a sustained drop in world spending and deep structural unemployment that expansionary monary policies could not cure. Similar, but less deep effects could recur today. Since 1945 the WTO (previously GATT) has held rounds of negotiations bween member nations aiming to avoid the most damaging trade wars and recessions by ensuring international trade stability. Dangerously the system has come close to breaking down. The WTO struggles to stop all countries breaking trade rules. A wave of protectionism would rebound on the developed world as lost foreign earnings for the developing world would mean they would cut back purchases from the developed world. If Chinese and Indian exports were curtailed their growth rates of 8-10% would rapidly slow and so would their spending in neighbouring south East Asia and their purchases of African commodities that has brought Africa 5% growth for the first time. Even worse, China s growth is based on poorly developed financial and legal systems with poor property rights. A financial crisis like that of 1997/8 in South-East Asia and political instability is possible in China. China is now so significant in world trade that a severe sback there would have world significance. The multiplier effects from a trade war followed by financial crisis would spread and redouble as poor countries cut back sharply on capital goods purchases. Germany s new recovery would falter with its specialism in machinery and capital goods. If Germany, Europe s largest economy slows, then so will the rest of Europe. Via international multipliers, recession could spread. More countries would struggle with third world debt and defaults would threaten the danger of an international financial crisis. Britain too is vulnerable as our strength in the City lies with our investment banks raising loans for capital hungry emerging economies. Far fewer City workers would earn large wages and Christmas bonuses of 1 million and above (4300 last Christmas). Falling City earnings will produce less spending and tax revenues to spread around Britain. We would suffer directly and indirectly from any protectionism that dislocates the world economy. The world s long post war international and economic stability is at risk. The LDC s Finally we should see protectionism in the context of globalisation. Free trade and all its benefits especially represents good globalisation with its potential to improve all economies. Globalisation has a bad name however as the rich world ss the rules which often benefit the self-interest of a few industries. The G8 countries demand that poor The Pudong district of Shanghai. If protectionism caused China s 10% growth rate to slow there would be a major sback for the world economy. M ARCH
5 countries open up to free trade to increase marks for western companies, but then yield to the demands of G8 firms and workers to protect their home marks against low wage countries. This one-sided demand for free trade is the product of western power and is largely why the Doha round of WTO trade talks have almost collapsed. The arguments should be reversed. The poor countries should be allowed protectionism under a fairer trade system. The infant industry argument suggests the economic case for poorer countries to defend a few key industries that lack economies of scale so they can industrialise. Often they have a potential comparative advantage that stays undeveloped because free trade allows large western companies to destroy potential compitors at birth before they can establish enough size to compe. The self-interest of a few removes the chances for hundreds of millions to escape poverty through economic growth. We must be careful however not to allow the rurn of the predominantly closed economy approach seen in Africa and India in the last century. Across the board protectionism of that kind produced economic inefficiency and failure to develop their economies or any comparative advantage. The emerging economies should aim to support and protect a few carefully researched and selected key industries which would prosper naturally under free mark forces once they are established. As they grow their local multiplier effects should create new supply industries, new infrastructure and consumer spending. This unbalanced growth from a few key sectors with previously unrealised comparative advantage should drag the rest of a developing nation forward just as the successful Asian Tigers did in the last century with spectacular results. A new wave of protectionism by the richer countries will have devastating effects on the emerging world s chance of export led growth. Each country starts at the low wage and labour intensive stage and then moves to more modern sectors including services and then enjoys high income and high levels of consumption. This is what happened to Singapore, Taiwan and South Korea in the last 40 years. We should ensure that we do not pull up the trade ladder which allows poor countries to escape from poverty. Questions for Discussion 1. What, without relying on protectionism, can governments do to reduce the large trade deficits in the UK and US and also reduce the large trade surpluses of the EU and China? 2. What are the links bween moves to increase the school leaving age to 18 including more modern apprenticeships and responding effectively to compition from low wage countries? Summary of Key Points 3. What other reforms might a developing country need to gain rapid growth other than selective import controls and unbalanced growth? 4. In what ways is exploitation of cheap labour in developing countries good or bad and how could we soften its bad effects? What would happen if we all stopped buying from low wage countries on the grounds of exploitation? Protectionism is rising through fears of compition from China and India and others. The interests of a few powerful G8 industries threaten the welfare of consumers in the developed world and maintain poverty in the poorest countries. Protectionism may threaten a world economic slowdown or depression via multiplier effects and financial crisis. The limited and temporary cases for protectionism are managed decline of old sectors in the industrial countries and managed development of comparative advantage through protecting selective infant industries in developing countries. We need a strong WTO, stronger in its policing role and in reflecting the interests of the developing world. The dangers of protectionism are not just textbook fears, but represent peoples lives and chances of escaping poverty. with Chief Examiner, Robert Nutter 1. (i) Access the World Trade Organisation web site and investigate the role of the WTO in the global economy. (ii) Research the current state of the Doha Round of trade negotiations. (iii) Investigate the implications of Vinam s recent membership of the WTO Read a review of Sherrod Brown s book Myths of Free Trade Why American Trade Policy has Failed, ISBN Investigate the views of Sherrod Brown on why the USA should renegotiate its membership of the North American Free Trade Area (NAFTA) Research the current protection measures in place for textiles and footwear into the European Union. (trade issues/textile and footwear sector) 5. Investigate the extent to which the European Union s textile industry will be affected by the recent membership of Romania. See Enlargement and the Textiles, Clothing and Footwear Industry by Doris Hanzl-Weiß, (2004), The World Economy 27 (6), M ARCH 2007
Globalisation and Open Markets
Wolfgang LEHMACHER Globalisation and Open Markets July 2009 What is Globalisation? Globalisation is a process of increasing global integration, which has had a large number of positive effects for nations
More informationGLOBALIZATION S CHALLENGES FOR THE DEVELOPED COUNTRIES
GLOBALIZATION S CHALLENGES FOR THE DEVELOPED COUNTRIES Shreekant G. Joag St. John s University New York INTRODUCTION By the end of the World War II, US and Europe, having experienced the disastrous consequences
More information4 Rebuilding a World Economy: The Post-war Era
4 Rebuilding a World Economy: The Post-war Era The Second World War broke out a mere two decades after the end of the First World War. It was fought between the Axis powers (mainly Nazi Germany, Japan
More informationFH Aachen University of applied sciences. Module: International Business Management Professor Dr. Ulrich Daldrup
FH Aachen University of applied sciences Module: International Business Management Professor Dr. Ulrich Daldrup A critical review of free trade agreements and protectionism Ashrith Arun Matriculation number:
More informationHas Globalization Helped or Hindered Economic Development? (EA)
Has Globalization Helped or Hindered Economic Development? (EA) Most economists believe that globalization contributes to economic development by increasing trade and investment across borders. Economic
More informationOctober 2006 APB Globalization: Benefits and Costs
October 2006 APB 06-04 Globalization: Benefits and Costs Put simply, globalization involves increasing integration of economies around the world from the national to the most local levels, involving trade
More informationSupport Materials. GCE Economics H061/H461: Exemplar Materials. AS/A Level Economics
Support Materials GCE Economics H061/H461: Exemplar Materials AS/A Level Economics Contents 1 Unit F581: Markets In Action 3 2 Unit F582: The National and International Economy 6 3 Unit F583: Economics
More informationThe End of the Multi-fiber Arrangement on January 1, 2005
On January 1 2005, the World Trade Organization agreement on textiles and clothing expired. All WTO members have unrestricted access to the American and European markets for their textiles exports. The
More informationInternational Economics Day 2. Douglas J Young Professor Emeritus MSU
International Economics Day 2 Douglas J Young Professor Emeritus MSU djyoung@montana.edu Goals/Schedule 1. How does International Trade affect Jobs, Wages and the Cost of Living? 2. How Do Trade Barriers
More informationGLOBALIZATION AND DEVELOPMENT
GLOBALIZATION AND DEVELOPMENT JOSEPH E. STIGLITZ TOKYO JULY 2007 The Successes of Globalization China and India, with 2.4 billion people, growing at historically unprecedented rates Continuing the successes
More informationGlobalisation: International Trade
UK Globalisation: International Trade Summary Writing Copyright: These materials are photocopiable but we would appreciate it if all logos and web addresses were left on materials. Thank you. COPYRIGHT
More informationTrade Basics. January 2019 Why Trade? Globalization and the benefits of trade By Dr. Robert L. Thompson
Trade Basics January 2019 Why Trade? Globalization and the benefits of trade By Dr. Robert L. Thompson Since the conclusion of World War II in 1945, international trade has been greatly facilitated by
More informationThe term developing countries does not have a precise definition, but it is a name given to many low and middle income countries.
Trade Policy in Developing Countries KOM, Chap 11 Introduction Import substituting industrialization Trade liberalization since 1985 Export oriented industrialization Industrial policies in East Asia The
More informationEconomics Summer Term Task
Economics Summer Term Task 1. Research the impact of the vote to leave the EU on the UK economy a. In the short term (the next year) b. In the long term (the next 5 to 10 years) -use the links on slide
More information3.1 How does the economy of the globalised world function in different places?
3.1 How does the economy of the globalised world function in different places? a. The balance between employment sectors (primary, secondary, tertiary and quaternary) varies spatially and is changing.
More informationFriday 25 May 2012 Afternoon
Friday 25 May 2012 Afternoon GCSE ECONOMICS A593/01/SM The UK Economy and Globalisation STIMULUS MATERIAL *A530190612* Duration: 1 hour 30 minutes INSTRUCTIONS TO CANDIDATES This is a clean copy of the
More informationGlobalisation of Markets
Globalisation of Markets Definition of globalisation (1) The geographic dispersion of industrial and service activities, for example research and development, sourcing of inputs, production and distribution,
More informationCHAPTER 10: Fundamentals of International Political Economy
1. China s economy now ranks as what number in terms of size? a. First b. Second c. Third d. Fourth 2. China s economy has grown by what factor each year since 1980? a. Three b. Five c. Seven d. Ten 3.
More informationChapter 10 Trade Policy in Developing Countries
Chapter 10 Trade Policy in Developing Countries Prepared by Iordanis Petsas To Accompany International Economics: Theory and Policy, Sixth Edition by Paul R. Krugman and Maurice Obstfeld Chapter Organization
More informationChapter Organization. Introduction. Introduction. Import-Substituting Industrialization. Import-Substituting Industrialization
Chapter 10 Trade Policy in Developing Countries Chapter Organization Introduction The East Asian Miracle Summary Prepared by Iordanis Petsas To Accompany International Economics: Theory and Policy, Sixth
More informationEurope and the US: Confronting Global Challenges
SPEECH/07/ Peter Mandelson EU Trade Commissioner Europe and the US: Confronting Global Challenges Carnegie Endowment Washington DC, 8 October 2007 EMBARGO UNTIL DELIVERED AT 16H30 CET The Carnegie Endowment
More informationDevelopment Dynamics. GCSE Geography Edexcel B Practice Exam Questions and Answers
Development Dynamics GCSE Geography Edexcel B Practice Exam Questions and Answers 2.1 Measuring Development Describe two indicators that show a country s level of development. [4 marks] This question is
More information"WTO DOHA ROUND: A CONTRIBUTION TO A FREER, FAIRER AND
"WTO DOHA ROUND: A CONTRIBUTION TO A FREER, FAIRER AND MORE SECURE TRADING SYSTEM" UNITED NATIONS ECOSOC PANEL ON WTO NEGOTIATIONS AND GLOBALIZATION NEW YORK 30 OCTOBER 2006 PASCAL LAMY DIRECTOR GENERAL
More informationWORLD ECONOMIC EXPANSION in the first half of the 1960's has
Chapter 5 Growth and Balance in the World Economy WORLD ECONOMIC EXPANSION in the first half of the 1960's has been sustained and rapid. The pace has probably been surpassed only during the period of recovery
More informationChina and India:Convergence and Divergence
China and India:Convergence and Divergence I. "What China is good at, India is not and vice versa. The countries are inverted mirror of each other».. «very real possibility that China and India will in
More informationSpeech given by Mervyn King, Governor of the Bank of England. At Salts Mills, Bradford, Yorkshire 13 June 2005
1 Speech given by Mervyn King, Governor of the Bank of England At Salts Mills, Bradford, Yorkshire 13 June 2005 All speeches are available online at www.bankofengland.co.uk/publications/pages/speeches/default.aspx
More informationCommittee: G13 Summit. Issue title: Reducing trade inequality. Submitted by: Tamás Kocsis, President of G13 Summit
Committee: G13 Summit Issue title: Reducing trade inequality Submitted by: Tamás Kocsis, President of G13 Summit Edited by: Kamilla Tóth, President of the General Assembly Introduction Trade: The phenomenon
More informationChapter 9: Fundamentals of International Political Economy
Chapter 9: Fundamentals of International Political Economy MULTIPLE CHOICE 1. International political economy can be defined as a. the international organizations such as the International Monetary Fund
More informationECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter 18 - Trade Towson University 1 / 42
ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 18 - Trade Towson University 1 / 42 Disclaimer These lecture notes are customized for the Macroeconomics
More informationGeneral Certificate of Education Advanced Level Examination January 2012
General Certificate of Education Advanced Level Examination January 2012 Economics ECON4 Unit 4 The National and International Economy Tuesday 31 January 2012 9.00 am to 11.00 am For this paper you must
More informationThe World Trade Organization and the future of multilateralism Note Key principles behind GATT general principle rules based not results based
The World Trade Organization and the future of multilateralism By Richard Baldwin, Journal of Economic perspectives, Winter 2016 The GATT (General Agreement on Tariffs and Trade) was established in unusual
More informationLecture 7: Domestic Politics of Trade. Benjamin Graham
Today s Plan Housekeeping Reading quiz Domestic Politics of Trade Housekeeping Homework 2 due next Thursday (September 25). Late papers not accepted. Will go up on my website this afternoon! Midterm October
More informationInternational Business Economics
International Business Economics Instructions: 3 points demand: Determine whether the statement is true or false and motivate your answer; 9 points demand: short essay. 1. Globalisation: Describe the globalisation
More informationGeneral Certificate of Education Advanced Level Examination January 2011
General Certificate of Education Advanced Level Examination January 2011 Economics ECON4 Unit 4 The National and International Economy Tuesday 1 February 2011 1.30 pm to 3.30 pm For this paper you must
More informationTo be opened on receipt
Oxford Cambridge and RSA To be opened on receipt GCSE ECONOMICS A593/01/SM The UK Economy and Globalisation PRE-RELEASE STIMULUS MATERIAL *7387927254* JUNE 2018 INSTRUCTIONS TO CANDIDATES You should make
More informationGlobalization: It Doesn t Just Happen
Conference Presentation November 2007 Globalization: It Doesn t Just Happen BY DEAN BAKER* Progressives will not be able to tackle the problems associated with globalization until they first understand
More informationFrequently asked questions
Frequently asked questions on globalisation, free trade, the WTO and NAMA The following questions could come up in conversations with people about trade so have a read through of the answers to get familiar
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 6: The International Economy 6.1 Globalisation Notes Characteristics of globalisation: Globalisation is the ever increasing integration of the world s local,
More informationBuilding on Global Europe: The Future EU Trade Agenda
Karel De Gucht European Commissioner for Trade Building on Global Europe: The Future EU Trade Agenda House of German Industries Berlin, 15 April 2010 Good afternoon ladies and gentlemen. It is a pleasure
More informationPART 1B NAME & SURNAME: THE EFFECTS OF GLOBALIZATION
Read TEXT 1 carefully and answer the questions from 1 to 10 by choosing the correct option (A,B,C,D) OR writing the answer based on information in the text. All answers must be written on the answer sheet.
More informationBenefits and costs of free trade for less developed countries
Benefits and costs of free trade for less developed countries Nina PAVCNIK Trade liberalization seems to have increased growth and income in developing countries over the past thirty years, through lower
More information9.1 Human Development Index Development improving the material conditions diffusion of knowledge and technology Measure by HDI
9: Development 9.1 Human Development Index Development improving the material conditions diffusion of knowledge and technology Measure by HDI Standard of living Access to knowledge Life expectancy 9.1
More informationThe International Law Annual Senior Lecturer, Kent Law School, Eliot College, University of Kent.
MULTILATERAL TRADE IN A TIME OF CRISIS -Dr. Donatella Alessandrini 1 The decline of world trade has attracted a lot of attention in the past three years. After an initial recovery in 2010, due in large
More informationMADE IN THE U.S.A. The U.S. Manufacturing Sector is Poised for Growth
MADE IN THE U.S.A. The U.S. Manufacturing Sector is Poised for Growth For at least the last century, manufacturing has been one of the most important sectors of the U.S. economy. Even as we move increasingly
More informationGlobalisation: International Trade
UK Summary Globalisation: International Trade The text defines the key points associated to globalization. It discusses the disparity of progression of trade between countries and highlights the integration
More informationChapter 7. Government Policy and International Trade
Chapter 7 Government Policy and International Trade First A Word About Trade Relationships Long-term relationships = 3 or more years Importance varies by country Value (% long-term US imports) Taiwan 67%,
More informationINTERNATIONAL TRADE. To accompany the Georgia International Business Curriculum. CTAE Resource Network, Instructional Resources Office, 2010
INTERNATIONAL TRADE GEORGIA PERFORMANCE STANDARDS: MKT-MP-5: INTERNATIONAL BUSINESS/MARKETING To accompany the Georgia International Business Curriculum. CTAE Resource Network, Instructional Resources
More informationJapan s growing Asia focus: Implications for Korea
Japan s growing Asia focus: Implications for Korea Dick Beason, Ph.D. Professor School of Business University of Alberta Edmonton, T6G 26R rbeason@ualberta.ca Japan s growing Asia focus Over the past decade
More informationHOW ECONOMIES GROW AND DEVELOP Macroeconomics In Context (Goodwin, et al.)
Chapter 17 HOW ECONOMIES GROW AND DEVELOP Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter presents material on economic growth, such as the theory behind it, how it is calculated,
More informationTHE RECENT TREND OF ROMANIA S INTERNATIONAL TRADE IN GOODS
THE RECENT TREND OF ROMANIA S INTERNATIONAL TRADE IN GOODS Andrei Cristian Balasan * Abstract: The article analyses the recent developments regarding the Romania trade in goods. We highlight how Romania
More informationDevelopment. Differences Between Countries
Development Between Countries Inequalities Between Developing Countries [Date] Today I will: - Know the reasons why there are differences between developing countries. There are over 100 Developing countries.
More informationInternational Economics Day 1. Douglas J Young Professor Emeritus MSU
International Economics Day 1 Douglas J Young Professor Emeritus MSU djyoung@montana.edu Goals/Schedule 1. How does International Trade affect Jobs, Wages and the Cost of Living? 2. How Do Trade Barriers
More informationInternational Business 7e
International Business 7e by Charles W.L. Hill (adapted for LIUC09 by R.Helg) McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 The Political Economy of
More informationIHS Outlook: Global Supply Chain Trends and Threats
SUPPLY CHAIN ECONOMICS IHS Outlook: Global Supply Chain Trends and Threats By Chris G. Christopher, Jr., Director, U.S. Macroeconomics & Consumer Economics, IHS Markit Global trade and the many supply
More informationTRADE IN THE GLOBAL ECONOMY
TRADE IN THE GLOBAL ECONOMY Learning Objectives Understand basic terms and concepts as applied to international trade. Understand basic ideas of why countries trade. Understand basic facts for trade Understand
More informationDeclining Industries, Mechanisms of Structural Adjustment, and Trade Policy in Pacific Basin Economies. Hugh Patrick. Working Paper No.
Declining Industries, Mechanisms of Structural Adjustment, and Trade Policy in Pacific Basin Economies Hugh Patrick Working Paper No. 28 Hugh Patrick is the R. D. Calking Professor of International Business
More informationFull clear download (no formatting errors) at:
International Economics 7th Edition Gerber TEST BANK Full clear download (no formatting errors) at: https://testbankreal.com/download/international-economics-7th-editiongerber-test-bank/ International
More informationIssue Brief for Congress Received through the CRS Web
Order Code IB98014 Issue Brief for Congress Received through the CRS Web China s Economic Conditions Updated January 6, 2003 Wayne M. Morrison Foreign Affairs, Defense, and Trade Division Congressional
More informationQu: Who's going take over the world?
C/W Qu: Who's going take over the world? 22/10/13 Aim: To describe who the BRICS and 'Next 11' are, explain their recent growth and develop a case study of India. Starter: Read the following. Why is it
More informationA view from Europe, as compared with the US, about the impact of China and India on the world economy
New York, April 11, 2006 AIG International Advisory Board A view from Europe, as compared with the US, about the impact of China and India on the world economy Jacques de Larosière Member Secretary of
More informationChapter 8: Linking TNCs & Nations to Globalisation
Chapter 8: Linking TNCs & Nations to Globalisation Globalisation refers to the way in which people's lives are becoming increasingly interlinked with those of distant people and places around the world.
More informationIt is impossible to eliminate disparities in wealth and development. ~ Discuss.
KITTY WONG 12.3 It is impossible to eliminate disparities in wealth and development. ~ Discuss. Disparity in Geography can be defined as the difference or inequality between regions measured in terms of
More informationPOLI 12D: International Relations Sections 1, 6
POLI 12D: International Relations Sections 1, 6 Spring 2017 TA: Clara Suong Chapter 10 Development: Causes of the Wealth and Poverty of Nations The realities of contemporary economic development: Billions
More informationAQA Economics A-level
AQA Economics A-level Microeconomics Topic 7: Distribution of Income and Wealth, Poverty and Inequality 7.1 The distribution of income and wealth Notes Distinction between wealth and income inequality
More informationProspects and Challenges for the Doha Round
Prospects and Challenges for the Doha Round Geza Feketekuty The Doha Round negotiations will continue for at least three more years. Not only is there a great deal more work to be done, but also the United
More informationNorwich Economic Papers Volume 6 (June 2012)
Should industrial development then be regulated by the government, or follow a planned path, or be exposed to foreign trade and investment so that the domestic industries can learn from the industries
More informationEmerging Market Consumers: A comparative study of Latin America and Asia-Pacific
Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific Euromonitor International ESOMAR Latin America 2010 Table of Contents Emerging markets and the global recession Demographic
More informationGovernments in the advanced industrialized countries have progressively opened
Oatl.6613.03.pgs 3/5/03 8:38 AM Page 75 CHAPTER 3 THE DOMESTIC POLITICS OF TRADE POLICY Governments in the advanced industrialized countries have progressively opened their markets to imports through the
More informationEdexcel (A) Economics A-level
Edexcel (A) Economics A-level Theme 4: A Global Perspective 4.2 Poverty and Inequality 4.2.2 Inequality Notes Distinction between wealth and income inequality Wealth is defined as a stock of assets, such
More informationThe European Union Economy, Brexit and the Resurgence of Economic Nationalism
The European Union Economy, Brexit and the Resurgence of Economic Nationalism George Alogoskoufis is the Constantine G. Karamanlis Chair of Hellenic and European Studies, The Fletcher School of Law and
More informationChapter Six. The Political Economy of International Trade. Opening Case. Opening Case
Chapter Six The Political Economy of International Trade Adapted by R. Helg for LIUC 2008 Opening Case 6-2 Since 1974, international trade in the textile industry has been governed by a system of quotas
More informationCRS Report for Congress
CRS Report for Congress Received through the CRS Web Order Code RS20683 Updated April 14, 2005 Taiwan s Accession to the WTO and Its Economic Relations with the United States and China Summary Wayne M.
More information1. Define GDP. The market value of all final goods and services produced within a nation in a given time period
Economics 1. Define GDP. The market value of all final goods and services produced within a nation in a given time period 2. GDP represents the aggregate or the whole economy. 3. List the 4 components
More informationCRS Report for Congress
Order Code RS20683 Updated November 4, 2005 CRS Report for Congress Received through the CRS Web Taiwan s Accession to the WTO and Its Economic Relations with the United States and China Summary Wayne
More informationInternational Business
International Business 10e By Charles W.L. Hill Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter
More informationPutting development back in the WTO
Putting development back in the WTO Timothy A. Wise et Kevin P. Gallagher Global Development and Environment Institute, Tufts University, Medford, MA USA Global trade talks collapsed in July for the third
More informationOpportunities from Globalization for European Companies
Karel De Gucht European Commissioner for Trade EUROPEAN COMMISSION [CHECK AGAINST DELIVERY] Opportunities from Globalization for European Companies High-level conference "Spain: from Stability to Growth"
More informationTrade, at what price?
Page 1 of 7 America and the world Trade, at what price? America s economy benefits hugely from trade. But its costs have been amplified by policy failures Apr 2nd 2016 WASHINGTON, DC From the print edition
More informationSOME FEATURES AND TRENDS OF THE WORLD TRADE IN THE GATT ERA
The USV Annals of Economics and Public Administration Volume 14, Issue 1(19), 2014 SOME FEATURES AND TRENDS OF THE WORLD TRADE IN THE GATT ERA Rozalia KICSI, Ph. D. Ștefan cel Mare University of Suceava,
More informationMARK2071: International and Global Marketing Overview
MARK2071: International and Global Marketing Overview 1. The scope and challenge of international marketing Global business trends 1. The rapid growth of the WTO and regional free trade areas e.g. NAFTA
More informationAdam Smith and Government Intervention in the Economy Sima Siami-Namini Graduate Research Assistant and Ph.D. Student Texas Tech University
Review of the Wealth of Nations Adam Smith and Government Intervention in the Economy Sima Siami-Namini Graduate Research Assistant and Ph.D. Student Texas Tech University May 14, 2015 Abstract The main
More informationReading Essentials and Study Guide
Lesson 2 Globalization: Characteristics and Trends ESSENTIAL QUESTION What are the challenges associated with globalization? Reading HELPDESK Academic Vocabulary strategy plan or method context circumstances
More information1.3. Rankings: imports, exports and overall trade volume Philippines trade with EU Member States Structure and trends by product
Front Cover Contents 1 Overview 2 1. Trade Relations 1.1. Trade in goods: main trends 1.2. Trade in services 1.3. Rankings: imports, exports and overall trade volume 1.4. Comparison of EU-Philippines
More informationA view from Europe, as compared with the US, about the impact of China and India on the world economy
A view from Europe, as compared with the US, about the impact of China and India on the world economy Intervention de Jacques de Larosière lors de la réunion du CEPII-TAC (Applied Economic & Financial
More informationContemporary Human Geography, 2e. Chapter 9. Development. Lectures. Karl Byrand, University of Wisconsin-Sheboygan Pearson Education, Inc.
Contemporary Human Geography, 2e Lectures Chapter 9 Development Karl Byrand, University of Wisconsin-Sheboygan 9.1 Human Development Index Development The process of improving the material conditions of
More informationThe EU-ASEAN FTA: Gender Issues and Advocacy. Naty Bernardino International Gender & Trade Network - Asia
The EU-ASEAN FTA: Gender Issues and Advocacy Naty Bernardino International Gender & Trade Network - Asia Association of South East Asian Nations 1967 establishment of ASEAN with the 5 original members:
More informationTo be opened on receipt
Oxford Cambridge and RSA To be opened on receipt A2 GCE ECONOMICS F585/01/SM The Global Economy STIMULUS MATERIAL *6373303001* JUNE 2016 INSTRUCTIONS TO CANDIDATES This copy must not be taken into the
More informationKeynote address by the WTO Director-General "The Challenge of Policy in the Era of Globalization"
Keynote address by the WTO Director-General "The Challenge of Policy in the Era of Globalization" PAFTAD 30 Conference on "Does Trade Deliver What it Promises?: Assessing the Critique of Globalization"
More informationInternational Trade: Lecture 5
International Trade: Lecture 5 Alexander Tarasov Higher School of Economics Fall 2016 Alexander Tarasov (Higher School of Economics) International Trade (Lecture 5) Fall 2016 1 / 24 Trade Policies Chapters
More informationChapter 01 Globalization
Chapter 01 Globalization True / False Questions 1. The notion that national economies are relatively self-contained entities is on the rise. 2. The shift toward a more integrated and interdependent world
More informationHAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues
HAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues Regional Economic Prospects May 2018 Stronger growth momentum: Growth in Q3 2017 was the strongest since Q3 2011
More informationChina After the East Asian Crisis
China After the East Asian Crisis Ross Garnaut Director and Professor of Economics Asia Pacific School of Economics and Management The Australian National University China After the East Asian Crisis When
More informationIndustrial Policy and African Development. Justin Yifu Lin National School of Development Peking University
Industrial Policy and African Development Justin Yifu Lin National School of Development Peking University 1 INTRODUCTION 2 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990
More informationTrade Costs and Export Decisions
Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises Trade Costs and Export Decisions Most U.S. firms do not report any exporting activity at all sell only
More informationCOMMENTS ON L. ALAN WINTERS, TRADE LIBERALISATION, ECONOMIC GROWTH AND POVERTY
The Governance of Globalisation Pontifical Academy of Social Sciences, Acta 9, Vatican City 2004 www.pass.va/content/dam/scienzesociali/pdf/acta9/acta9-llach2.pdf COMMENTS ON L. ALAN WINTERS, TRADE LIBERALISATION,
More informationGlobalization 10/5/2011. International Economics. Five Themes of Geography
International Economics G L O B A L I Z A T I O N, T H E F L A T W O R L D, A N D T H E I M P A C T O F T R A D E! Five Themes of Geography Globalization? Location Relative Location Absolute Location Place
More informationImpact of Globalization on Economic Growth in India
Impact of Globalization on Economic Growth in India Dr. P.C. Jose Paul* Assistant Professor Department of Economics, N.M. Christian College, Marthadam Email: pcjosepaul@gmail.com Abstract Globalization
More informationGLOBAL EUROPE. competing in the world. For more information: EXTERNAL TRADE. European Commission
kg612912farde 23/03/07 8:52 Page 1 NG-76-06-298-EN-C GLOBAL EUROPE For more information: http://ec.europa.eu/trade competing in the world European Commission EXTERNAL TRADE kg612912farde 23/03/07 8:52
More informationBrazil, Cuba & Mexico
Brazil, Cuba & Mexico Standards SS6E1 Analyze different economic systems. a. Compare how traditional, command, and market economies answer the economic questions of 1-what to produce, 2- how to produce,
More informationDirk Pilat:
Note: This presentation reflects my personal views and not necessarily those of the OECD or its member countries. Research Institute for Economy Trade and Industry, 28 March 2006 The Globalisation of Value
More information