...Deeksha Singh Fundamentals of International Business September 25, 2012 Agricultural Subsidies and Development Summary of Case Study: Agricultural Subsidies and Development The closing case describes the government sponsored subsidies and tariffs on agricultural products in the United States and EU countries. The subsidies and tariffs protect farmers in those countries from low commodity prices, however at the same time, hurt farmers in the developing nations. According to the United Nation, the subsidies and tariffs effectively cancel out the aid provided by the developed world to the developing nations by limiting export earnings from agricultural products. Discussion of this case can revolve around the following questions: 1) If agricultural tariffs and subsidies to producers were removed overnight, what would the impact be on the average consumer in developed nations such as the US and the EU countries? What would the impact be on the average farmer? Do you think the total benefits outweigh the total cost or vice versa? I believe if agricultural tariffs and subsidies were removed overnight the impact on the average consumer in a developed nation would be, the prices of goods would rise because developed nations would no longer be dumping the surplus of good on the world market. The impact on the average farmer would be that they are no longer protected from international demand and prices. I do not think the total benefits outweigh the cost; they should remove...
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...AGRICULTURE SUBSIDIES AND DEVELOPMENT QUESTION 1 IF AGRICULTURAL TARIFFS AND SUBSIDIES TO PRODUCERS WERE REMOVED OVERNIGHT, WHAT WOULD THE IMPACT BE IN THE AVERAGE CONSUMER IN DEVELOPED NATIONS SUCH AS THE UNITED STATES AND THE EU COUNTRIES? WHAT WOULD BE THE IMPACT ON THE AVERAGE FARMER? Lowering the tariffs and getting rid of subsidies would allow the average consumers to save. The prices for these products would be cheaper and the taxes paid would eliminate because there would no longer be any subsidies to pay for. On the other had this would be a negative for the average farmers in these nations. There would no longer be a surplus of goods that could be sold to monopolize the market. Farmers would no longer benefit from the subsidies they received all profits would be based on production. Lower commodity prices in developing nations would cause farmers to lose revenue because in order to make a profit they would have to raise prices causing them to not be competitive within their market. QUESTION 2 WHICH DO YOU THINK WOULD HELP THE CITIZENS OF THE WORLD’S POOREST NATIONS MORE, INCREASING FOREIGN AID OR REMOVING ALL AGRICULTURAL TARIFFS AND SUBSIDES? Foreign aid comes with strings attached and it does not come without a cost. Foreign aid only seems to balance out the “goodwill” of developed countries. As stated in the case the foreign aid that these developing nations receive from developed countries is less than what they are losing if allowed to sell the commodities...
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...AGRICULTURE SUBSIDIES AND DEVELOPMENT QUESTION 1 IF AGRICULTURAL TARIFFS AND SUBSIDIES TO PRODUCERS WERE REMOVED OVERNIGHT, WHAT WOULD THE IMPACT BE IN THE AVERAGE CONSUMER IN DEVELOPED NATIONS SUCH AS THE UNITED STATES AND THE EU COUNTRIES? WHAT WOULD BE THE IMPACT ON THE AVERAGE FARMER? Lowering the tariffs and getting rid of subsidies would allow the average consumers to save. The prices for these products would be cheaper and the taxes paid would eliminate because there would no longer be any subsidies to pay for. On the other had this would be a negative for the average farmers in these nations. There would no longer be a surplus of goods that could be sold to monopolize the market. Farmers would no longer benefit from the subsidies they received all profits would be based on production. Lower commodity prices in developing nations would cause farmers to lose revenue because in order to make a profit they would have to raise prices causing them to not be competitive within their market. QUESTION 2 WHICH DO YOU THINK WOULD HELP THE CITIZENS OF THE WORLD’S POOREST NATIONS MORE, INCREASING FOREIGN AID OR REMOVING ALL AGRICULTURAL TARIFFS AND SUBSIDES? Foreign aid comes with strings attached and it does not come without a cost. Foreign aid only seems to balance out the “goodwill” of developed countries. As stated in the case the foreign aid that these developing nations receive from developed countries is less than what they are losing if allowed to sell the commodities...
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...DMACC THE ETHANOL ENVIORMENT A RESEARCH PAPER SUBBMITTED TO MR. JEFF WILLIAMS INTRODUCTION TO ETHICS PHI 105 BE BOONE, IA NOVEMBER 17, 2014 Abstract Ethanol is a renewable resource that is produced from many agricultural products. The public attitude towards corn based ethanol is influenced by many different subjects like, the effects of production on the environment, the effects on local economies, and the effects on the national food prices. Focusing on corn based ethanol there are considerations to take into effect such as the benefits of ethanol, the problems or concerns with ethanol, the political involvement with ethanol, and the effect of ethanol on the economy. The Ethanol Environment Ethanol is a renewable resource that is produced from many agricultural products such as corn, which can be blended into many different proportions of gasoline. The public attitude towards corn based ethanol is influenced by many different subjects. The overall plan for ethanol was good but took a wrong turn and has caused damage as a result. As stated by Michelle Heath, “there are no known environmental hazards that have to do with ethanol.” Ethanol does not only make our vehicles friendlier to the environmental it also has other impacts. Considering our total energy use, including building, heating and electricity, the savings from the use of biofuels is two-thirds greater than using gasoline (Dewsbury, 2009). With the increased...
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...Mandatory – setting quotas and mandatories for goods Indicative – encouraging production of some branch by subsides, grants and taxes 4. Name at least 3 economic systems Socialism (planned and collective), capitalism (individualistic and competetive), mixed (planned and individualistic – war capitalism, collective and planed – market socialism eg. China) 5. Name basic institutions of effective capitalism Provate property rights, market system, no corruption, monetary stability, openess of economy 6. Name basic recommendations or elements of merchantilism Encouraging agriculture, ecenomic wealth can be measured by precious metal (silver/gold); export over import, merchant fleet as vital importance, government involved in economy 7. Key elements of national competetiveness Basic institutions, infrastructure, stability 8. Name main elements of firm competetiveness Demand and supply, financal performance, investment ratio 9. When Keynesian policies to fight recession can not be applied? When there is a budget deficyt, high public debt, recession, no possibility to borrow money 10. How many arguments in favour of protection of infant industries can u name? Further development of this industry, reduction of unemployment, better situation in military Times, increase od Keynesian’s multiplier 11. Name arguments against protection High taxes for subsides, uncompetetive production, corruption, faulty specialization, trade wars, rise of prices, no scale benefits 12...
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...dictated policies are followed. It is not the budget that Finance minister may present. In scenario IV, alternative budget proposal has been detailed out with a real fiscal correction. It has been assumed that the policies are in place for five years. The scenario III is the first year of transition. Changes in taxation both direct and indirect have been done to raise revenue. Expenditures for various sectors have been estimated and the overall impact on the economy has been explained. A comparison between the revised estimates of 1993-94 and alternative budget 1994-95 (Scenario IV) has been done. Finally, the critique has been given with the responses to the critique by Arun Kumar. THEORETICAL BACKGROUND Financing of economic development through taxation- Kalecki Assumptions: There are two classes in society: capitalists and workers Workers do not save. Consumption is equal to their income. Therefore total savings is equal to the saving out of the profit of the capitalists. Economy is divided into two sectors: Department I, Investment goods and department II the consumption goods. The value of production of each sector will be split...
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...Affects of Globalization and Free Trade The idea of free trade is a big issue in the United States because it has so many positive and negative effects on our daily lives. Free trade is a market in which goods and services between countries are traded by government rules and restrictions. Some of these rules and regulations include taxes, non-tariff barriers, quotas, legislation, and other regulations. These regulations are there to keep domestic industries from being taken over from foreign competition. Some people think that free trade is a good thing because when we get products from other countries, the consumers can actually afford them. If we had to make cell phones, computer, sneakers, and items like that here, no one could afford those things. On the other hand, because we are shipping so many jobs overseas, many people in the U.S. are losing their jobs. If we keep the jobs here, no one could afford things like a cell phone, and if we use free trade to get products from overseas, we lose jobs. This is called outsourcing. Free trade is an issue that affects many people, in both positive and negative ways. Free trade is one of the reasons people in the United States are able to have such nice things. People take everyday things for granted, such as cell phones, lab tops, cars, and much more. If all of these products were made in the United States, most people would not be able to afford them. By the United States being able to get goods from other countries...
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...Medium Enterprises (SMEs) play a pivotal role in the development of the country. It has made significant contribution to industrial production, export and employment generation. In developing countries as well as developed countries they are important from the point of view of employment generations, which is very important in countries like India with huge backlog of unemployment in the urban sections of the economy. It has been observed that their composition depends upon the way the production is being organized in the economy .However in India Government deliberately planned the growth of SMEs to achieve certain economic and non-economic objectives. India has registered a consistent high economic growth (6-9%) over the last decade and was able to survive and sustain world recession triggered in 2008. For the sustainability of this kind of growth proper nurturing of SME sector is imperative. This paper will detail various challenges being faced by Indian SMEs, the role of government in upliftment of staggering Indian SMEs as well as the impact of government initiatives and policies on the upliftment of Indian SMEs. This paper also highlights the recommended solutions so that SME sector is empowered to perform better and prosper in domestic and international arena. However there are certain distinctions to be made regarding providing protection as the same time not hampering their growth pattern by providing extra shield or subsides, tax evasions for these SMES. It further discusses...
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...Poor Countries (HIPC) Initiative, 2010). Under the HIPC, the Fund and Bank provide interim debt relief in the initial stage and full debt-relief upon completion (Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative, 2010). In order to be considered, “countries must meet certain criteria, commit to poverty reduction through policy changes, and demonstrate a good track-record over time” (Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative, 2010). The HIPC is a two-step process. The first step of the HIPC is decision point. In order to be considered for HIPC Initiative assistance, a country must meet four qualifications. First, the country must be eligible to borrow from the World Bank’s International Development Agency (Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative, 2010). Secondly, the country must face an unsustainable debt burden that cannot be satisfied by traditional debt relief mechanisms (Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative, 2010). Next, the country must have established a track record of reform and sound policies through IMF and World...
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...Research Suggests Farm Subsidies are the Reason Americans Pay Higher Food Prices, Higher Taxes, Ending Small-Scale Farming while Destroying our Ecosystem: Michael L Ashcraft Western Governors University Background: Over 70 years ago, The Roosevelt administration announced the onset of government farm subsidies as a temporary emergency measure to help farmers earn a certain level of income. Although there have been dramatic efficiency upgrades within the farming industry, little change has been changed made regarding how the government funds farm subsidies. The basic idea of how government subsidies function, the government spends hundreds of millions of dollars to raise farmers incomes by raising the price of certain farm commodities. This increase in price encourages farmers to produce these subsidized commodities in large amounts, while encouraging consumers to buy them in small amounts (Armey, R. K., 1990). The result of producing large amounts while purchased amounts are low creates a surplus. Once a surplus occurs the government spends hundreds of millions of dollars encouraging farmers to discontinue producing the certain commodities, essentially subsidizing farmers not to farm. This policy creates great inefficiency, under the farm law passed in 1985, the Department of Agriculture has paid dairy farmers to kill 1.6 million cows and take five-year vacations from farming. Regulations have been enforced that have led to the squandering...
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...August 1938 of the West India Royal Commission led by Lord Moyne, to investigate and make recommendations on the conditions in the British territories. The comprehensive Report detailing the horrible conditions suffered by the people of the then British Caribbean is presented in its entirety and is enhanced by an introduction by Denis Benn. From health to infant mortality; housing to child labour and discrimination against women; labour and trade unions; agricultural policy and land settlement, the Report was scathing in its criticism of British colonial policy in the Caribbean and advanced a number of recommendations to deal with the challenges of the territories. A seminal document in the development of the Caribbean The Moyne Report is a critical document for scholars of Caribbean history, society, economics and politics. Social & Economic Conditions The Great Depression made conditions in the West Indies much worse due to a drastic decrease in exports and a sharp decline in the global price of sugar.[13] Some agricultural industries suffered further damage due to endemics of plant disease and poor weather. Substandard wages were cut further following the collapse on Wall Street and...
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...The Important Concepts and Effects of A Commodity Price Change In The Malaysia Market A commodity is a raw material or primary agricultural product that can be bought and sold without qualitative differentiation across a market, such as gold or wheat. A Commodity also maintains a close universal price regardless of who produces it. The main commodities such as aluminium, cocoa, coffee, copper, corn, copper, cotton crude oil, lead, heating oil, gold, lean hogs, live cattle, natural gas, nickel, platinum, palm oil, soybeans oil, soybean, silver, sugar, tin, unleaded gas, wheat and zinc. Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday. Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would be rises most this year, with less pronounced increases in natural gas, zinc and cattle. Besides that, Frenchman said "2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies”, estimating worldwide economic output would increase 4 percent in 2011. Over 70 percent of the growth will come from commodity-intensive emerging markets. China, India and Latin America, in particular, will be acting as a 'pull' for global commodities. That’s means rising commodity prices could be a boon for countries where raw materials are grown, mined, produced and refined...
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...Community expected to contribute to above average investment returns in both the short and long-term. While the information provided serves as a base of knowledge and introduction to the region, there is an expansive amount of information related to the topics below through the World Bank, the African Development Bank Group, African Investment Associations, and numerous periodicals. Specific information on privatizations is available at the Multilateral Investment Guarantee Agency’s PrivatizationLink. Introduction Africa is a dynamic landmass. Home to some of the world’s richest and poorest people in the world, this little explored continent has a unique story and seen a struggling path of development leaving more than 600 million inhabitants living on less than $2 a day PPP. Although much of Africa is, developmentally speaking, several generations behind the United States and other western nations, there is reason to believe that returns from human and physical infrastructure, foreign direct investment, and international aid organizations will set the stage for sustainable high growth opportunities in the future. While the continent as a whole shares in the struggles for development, the size of the landmass is four times that of the US and is by no means a homogenous region. Africa is as diverse economically and culturally as it is expansive. After breaking the continent into regions one still leaves ample room for misleading generalizations. Therefore, it is important to refine...
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...ARTHUR LOK JACK GRADUATE SCHOOL OF BUSINESS THE UNIVERSITY OF THE WEST INDIES EXECUTIVE MASTERS IN BUSINESS ADMINISTRATION GLOBAL MACROECONOMICS AND THE CARIBBEAN BUSINESS ENVIRONMENT (BUAD 6085) INDIVIDUAL COURSEWORK ASSIGNMENT CAN SMALL DEVELOPING COUNTRIES SURVIVE IN A GLOBALISED ENVIRONMENT? Submitted by: VITRA SINGH (UWI ID #: 91780646) Cohort 22 25 OCTOBER 2010 It has been said that arguing against globalization is like arguing against the laws of gravity. - Kofi Annan INTRODUCTION I sit at a food court near a Manchu Wok take out in O’Hare International Airport in Chicago, waiting on a flight to Miami and a connection back home, to Trinidad. My Dell laptop is on the table in front of me and my Nokia phone is next to it. My roll-on hand luggage is at my feet, a SwissGear brand, bought in London with a tag on the side which reads ‘Made in China’. Across the table from me, sits a group of young American men on their way to Beijing. Announcements in the background call the departure of an Air France flight. A family walks by; a man, a woman and a girl of about six. The man calls out to the little girl and his accent confirms for me, his East Indian heritage. The girl’s attention is absorbed in a bright pink Nintendo DSi. Later at the gate, a seventy five year old woman from Nebraska, sits next to me and tells me that she is on her way for an ‘overseas adventure’ in South America. She has always wanted to do this, she says, handing...
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... Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium Seeks Protection THE CASE FOR GOVERNMENT INTERVENTION Political Arguments for Intervention Country Focus: Trade in Hormone-Treated Beef Economic Arguments for Intervention THE REVISED CASE FOR FREE TRADE Retaliation and Trade War Domestic Politics DEVELOPMENT OF THE WORLD TRADING SYSTEM From Smith to the Great Depression 1947-1979: GATT, Trade Liberalization, and Economic Growth 1980-1993: Protectionist Trends The Uruguay Round and the World Trade Organization WTO: Experience to Date The Future of the WTO: Unresolved Issues and the Doha Round Country Focus: Estimating the Gains from Trade for America FOCUS ON MANAGERIAL IMPLICATIONS Trade Barriers and Firm Strategy Policy Implications SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Agricultural Subsidies Learning Objectives 1. Describe the policy instruments used by governments to influence international trade flows. 2. Understand why governments sometimes intervene in international trade. 3. Articulate the arguments against strategic trade policy. 4. Describe the development of the world trading system...
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