...“Why do most states try to restrict trade?” ECOP1003 31st August 2009 Jeffrey Chiang 309021863 Literally, “trade is the oldest and most important economic nexus among nations” (Gilpin 1987: 171); in fact, “trade along with war has been central to the evolution of international relations” (ibid). Trade has been considered essentially important for centuries for the reason that it provides wealth from the taxation of trade for politicians and the states (Gilpin, 1987). In the years since World War II, world trade has technically become free trade (Economist, 2009). By definition, free trade is a term that is used to describe “the ability of people to undertake economic transactions with people in other countries free from any restraints imposed by governments or other regulators” (Economist 2009: 1). As a result of free trade, “the volume of world merchandise trade at the start of the 21st century was about 17 times what it was in 1950, and the world's total output was not even six times as big” (ibid). Though free trade gives advantages to developed nations and businesses, it is somehow a destructive tool for developing countries and firms. Therefore, mercantilists oppose liberal trade and support the idea of limiting trade to make sure that a country or firm does not take advantages over another in a negative way. Though free trade has grown rapidly since 1950 and has been extremely beneficial to various states, “trade has another and more controversial effect, and...
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...Why Adam Smith is important Adam Smith (1723-1790) was a Scottish philosopher and economist who is best known as the author of An Inquiry into the Nature and Causes of the Wealth Of Nations (1776), one of the most influential books ever written. The old view of economics In Smith’s day, people saw national wealth in terms of a country’s stock of gold and silver. Importing goods from abroad was seen as damaging because it meant that this wealth must be given up to pay for them; exporting goods was seen as good because these precious metals came back. So countries maintained a vast network of controls to prevent this metal wealth draining out – taxes on imports, subsidies to exporters, and protection for domestic industries. The same protectionism ruled at home too. Cities prevented artisans from other towns moving in to ply their trade; manufacturers and merchants petitioned the king for protective monopolies; labour-saving devices were banned as a threat to existing producers. The productivity of free exchange Smith showed that this vast ‘mercantilist’ edifice was folly. He argued that in a free exchange, both sides became better off. Quite simply, nobody would trade if they expected to lose from it. The buyer profits, just as the seller does. Imports are just as valuable to us as our exports are to others. Because trade benefits both sides, said Smith, it increases our prosperity just as surely as do agriculture or manufacture. A nation’s wealth is not the quantity of gold...
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...English Comp 10 December 2014 End Protectionism. Table of Contents Section 1: Introduction---------------------------------------------------------------------------------- 3 Section 2: What is Protectionism?-------------------------------------------------------------------- 3-9 Section 3: Why does it occur? ------------------------------------------------------------------------- 9-10 Section 4: Arguments For ------------------------------------------------------------------------------10-13 Section 5: Conclusion------------------------------------------------------------------------------------13-15 Works Cited-----------------------------------------------------------------------------------------------16 Section 1: Introduction The United States should institute a blanket reform of its international trade policies. Its current protectionist practices are both in violation of current World Trade Organization suggestions and mandates and, far from being beneficial to the American economy, for the most part serve to hurt both American and foreign consumers. There are few American markets not protected in some way by the Federal Government in the form of tariffs, quotas, or domestic subsidies. While these practices are touted as an aid to domestic manufacturing process, true economic analysis shows that most if not all protectionist measures actually serve to limit economic growth. The arguments given to justify protectionism range from the poorly-disguised corporate...
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...1) Discuss how the Mont Pèlerin Conference changed America view of manufacturing and trade. First I will explain what in general the Mont Pèlerin Conference is, which economic view they represented. Moreover I want to deal with people who are allowed and why they are allowed to join this Conference and which goals they pursue. In general the Mont Pèlerin Conference depended on a meeting which was formed by Friedrich von Hayek in 1947 at Mont Pèlerin in Switzerland. He invited 36 people who followed in a strict sense of liberalism, particularly the economic liberalism. Under these people were above all, economist, but, e.g., also philosophers, historians and politicians. Under it were also some Nobel Prize Laureates in economics and peace. Most of the people were Europeans, only two reluctant Americans took part on this meeting. Surprisingly this meeting was most supported from the american free market and libertarian groups. The goal of this conference was to discuss the view and the roll of the liberalism after the Second World War. The scholars gave on the meeting to level-economic and state interventionist's broads attempts a refusal and looked at a restoration of political freedom and free market economy as an inalienable condition of a lasting future protection after the Second World War. Thus the uppermost aim of the Mont Pèlerin Conference was the creation of a free market economy, above all to free trade and and the world peace originating from it. They thought that...
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...Ø 105% Tariffs on U.S. Chickens (2010) Ø Substitute Airbus for Boeing ? Summary of the Case: China’s Retaliation ARGUMENTS FOR : ARGUMENTS AGAINST: ECONOMIC: • Protect the U.S. from unfair competition brought in by China • Protect tire industry workers in the U.S. • Stop dumping caused by low cost producers- China ECONOMIC: • Inflict economic damage on both countries • Loss of economic welfare (in the U.S.) Ø Higher prices Ø Lower consumer choice • Trade war POLITICAL REASONING : • One of the key reasons President Obama backed up the International Trade Commission was to keep the American labour unions content and gain their support during the elections. • Expected outcome of the protectionism policy applied Ø Predicted increase of 1,200 jobs on the tire-manufacturing sector Ø Theoretical expectation • Actual outcome on consumers Ø Higher prices for consumers q Prices of Chinese tire imports faced a 26% increase • Actual outcome on the labour market Ø President Obama “over a thousand Americans are working today because we stopped a surge in Chinese tires.” Ø Vic Delorio “ This decision will...
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...社會主義經濟理論與實踐課後報告 題目：由台灣太陽花學運看兩岸經貿的未來 姓 學 院 專 名：Cronus Huang 號： 系：复旦管理學院 業：EMBA, 复旦大學 EMBA 2013 复旦-台大班 2014 年 4 月 14 日 1 目錄 一、 前言 PREFACE / INTRODUCTION ................................................... 4 二、 回顧 BACKGROUND ...................................................................... 4 三、 本文 MAIN.................................................................................... 5 四、 結果與分析 RESULT ...................................................................... 6 五、 結論 CONCLUSION ........................................................................ 6 六、 參考文獻 REFERENCE.................................................................... 7 2 摘要 針對《海峽兩岸服務貿易協議》（Cross-Strait Service Trade Agreement 或 Cross-strait agreement on trade in services），大陸國台辦發言人馬曉光表示此協議，兩岸經濟合作將「給 台灣民眾帶來了實實在在的利益。而對台灣執政的國民黨認為此協議是依循 ECFA第四條內容 依法談判且對國家未來有利的協議。 但是，此協議結果在台灣立法院遭反對黨抗爭與擱置超過三個月，於是2014年3月17日， 國民黨立委張慶忠用30秒強行宣布會議決議：「出席人數52人，已達法定人數，開會，進行討 論事項，海峽兩岸服貿協議已逾3個月期限，依法視為已經審查，送院會存查，散會。」這個 動作引爆了社會運動組織的憤怒，加上談判過程被反對者認為未公開，服貿簽訂過程被視為" 黑箱"，引爆了後續的太陽花學運。許多人驚訝於2014/3/18台灣的大學生攻佔立法院、接續強 攀行政院的激昂場景，台灣的大學生憤怒的年輕身影，究竟從何而來？為何而來？ 對台灣民主發展而言，三月十八日到四月十日是無比沉重的二十四天。服貿協議如此複 雜，橫跨經濟、貿易、法律、兩岸政治的艱澀議題，為何能點燃成千上萬學生的強烈情緒，讓 他們寧可放下學業與家庭，長期靜坐抗爭？想理解這股世代之怒，就必須以這一輩年輕人的眼 光，重新觀看身處的台灣。但是這些大學生為了表達抗議而「佔領立法院」和「佔領行政院」 的違法行為居然被台灣大部分的民意及媒體視為無罪或故意忽略， 這將對台灣民主制度造成多 大的退步與傷害？而台灣政府當局對此次學運學生的違法行為將採取何種處置才能符合社會 公平正義？ 立法院王金平承諾兩岸協議監督條例草案完成立法前，不召集兩岸服務貿易協議相關黨團 協商會議。在此條件下太陽花學運同意退場，妥協的條件是先有《兩岸協議監督條例》才能逐 條討論服貿協議內容。這次事件是台灣民主歷史上，國會議場首次遭到公民佔領，而公權力完...
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...INTERNATIONAL POLICY IMPLICATIONS FOR CHILD LABOUR IN INDIA. INTRODUCTION • According to the International Labour Office, any activity other than study or play, remunerated or unremunerated, carried out by a person under the age of 15 years is defined as child labour. • 90 % of the total child employment is concentrated in Asia & Africa, with more than 44 million child labourers in India alone. REVIEW OF LITERATURE • Economic Impact of child labour- a) Micro family level- Short run effect on house hold income, long run effect on house hold poverty through human capital. b) Macro variables- Long run growth & development, FDI & Labour market. • Forms of Child Labour- a) Hazardous and non-hazardous activities b) Agricultural and non-agricultural work c) Jobs in the modern and traditional industries d) Economic and non-economic activities e) wage earners and unpaid family workers • Effect of Child Labour- a) Loss of human capital. b) Slows down technological progress. c) Health problem. • Causes of Child Labour- a) Lack of enforcement of minimum age requirement (confusion regarding description of age limit of child) b) Poverty & schooling problem (inaccessibility of school & lack of quality education). c) Rigid cultural & social role limiting educational attainment. d) Acceptance of social class separation.(lower castes expected to perfirm manual labour...
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...Government quotas and subsidies are justified at times. The US sugar policy is a long standing policy that is highly beneficial to sugar growers and a source of controversy for industries that rely on sugar. Government quotas are enacted to benefit domestic industries. The most prevalent reasons for quotas are: protecting domestic employment, hedging against low foreign wages, protecting infant industries, combating unfair trade and ensuring notational security. Foreign imports produced overseas using workers making lower wages would enjoy pricing advantages to domestic goods, so they may have a quota set. Infant industries in a country have to build up to compete with imports that may enjoy and advantage in economies of scale. Unfair trade occurs when products are dumped onto a market at below market price, possibly even below production price, a quota would at least limit that kind of tactic. If a good is seen as important to the security of the economy, which is a national security interest quotas can help protect that industry (Import Quotas, 2013). Export subsidies encourage domestic industries to export goods by increasing the revenue businesses receive by exporting goods. This may be to compete with foreign goods that are subsidized themselves or have a lower price for any number of reasons. When used judiciously these protectionist policies can be beneficial to industries but there is a concern about how they may affect domestic consumers. US sugar policy sets a floor...
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...INDITEX’S Operations Overview INDITEX (Industria de Diseño TextiL) is a Spanish cosmopolitan company that deals in clothing and textile. The company has its headquarters in Arteixo, Glalicia and is a composition of approximately a hundred firms that designs, produces and distributes textiles and other related products. INDITEX is the largest fashion group globally and runs over six thousand two hundred retail stores across the globe. Is Protectionism Good? Why Trade protectionism is the government measures and policies that tend to limit international trade with the intention of protecting local business entities, resources, as well as jobs from external competition. This can be achieved through enaction of import tariffs, tax subsidies on local businesses and other direct government interventions. Most countries use this when they feel that the local industries are being destroyed by an imbalanced competition from the foreign entities, and are normally politically driven. Protectionism is considered to be a good move by nations due to several reasons such as protection of a nation’s culture. It protects the culture from dilution. Secondly, it protects young and upcoming companies from ‘dumping’, which is selling products at throw away prices than it should be in a bid to attract certain markets. Such companies enjoy the protection until the time they are able to compete fairly. The protection also extends to the local fully established industries since they are cushioned...
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...overview of China today Relationship of China and world MNCs ‘A still growing but more complex China’ Impact of global financial crisis on the relationship China in the ranking of MNCs wish-list What does today’s China hold for MNCs 2 ‘A still growing but more complex China’: Current opportunities and challenges for MNCs in China 2. Challenges for MNCs as they expand their footprint in the world’s second largest economy “Not ‘Cheap China’ any more: costs are soaring across China Business Challenges Labor shortages; due to China’s aging problem Wage inflation; country’s ageing population has changed the cost equation abruptly Conducting Regulatory successful Challenges Rise of trade protectionism Local competitors are becoming more competitive business in the world’s 2nd largest economy is increasingly Regional ‘There is more than one China’ Differences challenging Rising consumption Selling to China’s middle-class isn’t always easy Explosive growth in both desire and purchasing power China’s middle class Consumption patterns can change overnight 3 ‘A still growing but more complex China’: Current opportunities and challenges for MNCs in China 3. Opportunities for MNCs to operate in China Favorable tax treatment to foreign invested companies VAT...
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...Boeing versus Airbus: The ‘endless’ crusade for continuation of subsidy! (A case study) Case reviewer: Angelica Sharma* Brought up in a family in which my parents were always ready to help anyone, closely or even remotely related to them, but not without being duly satisfied about the urgency, righteousness / desirability of assistance (mostly financial) that was asked for, I have, overtime, come to view non-market incentives like subsidies, grants and tariffs from a mind-set that I have found moulded in their company. I look upon my parents as really great protagonists of market-economy without undermining their sense of sympathy and concern for the hapless lot around them in that country, they proudly refer to as India. They always made a distinction between who deserved and who did not deserve the favour that has been asked for. And also, they were particular to find out when, in what form, how much and for how long the assistance, if any, was to be there. Strangely, even to day, they remorsefully recall the few instances of having wasted their scarce productive resources on individuals who, they later-on found, never wanted to be on their own. But they did learn a lesson from these experiences. I have grown in such family environment of respect for merit, hard work and self-pride. It is endowed with this sense that I intend to ponder over the Boeing-Airbus subsidy-related trade-rift and comment on the perceptions, policies, arguments and counter-arguments of the two...
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...In a different case, 1930, congress passed the Smoot-Hawley Tariff Act to protect domestic industries and farmers. The Act raised average tariff rates from 40 percent to 47 percent, reached the highest in decades. It quickly turned into a trade war, U.S. trade partners responses included – “an increase in tariffs by the United Kingdom, prohibitive Italian tariffs on automobiles, significantly increased Spanish duties on products largely imported from the United States (e.g., automobiles, tires, tubes, and motion pictures), and similar Canadian actions against U.S. imports” (Deese et al. 63). During this period, U.S. export to Europe dropped from $2,341 million in 1929 to $784 million in 1932, while imported goods went from $1,334 million in...
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...The current economic situation has divided opinion on the use of trade protectionism.’ Discuss. ECONOMIC CRISIS AND PROTECTIONISM: A DISCUSSION Introduction First and foremost to logically explore the question at hand, the meaning of trade protectionism must be fully comprehended, according to Amadeo (2012) “Trade protectionism is used by countries when they think their industries are being damaged by unfair competition by other countries” The fundamental commotion of the pre-Great Recession on the economic order that was based on the assumption of inherent value of unlimited trade and capital flows has led to the new emergence of debate on trade protectionism as the means of combating the present crisis. In particular, the European Union (EU) nations have seen increasing calls for the implementation of the more protectionist economic policies. However, given the integrated and interconnected nature of both modern and specific national economies, one may note that protectionist policies would be more likely to hurt economic recovery and contribute to the sharpening of international trade contradictions. This paper presents an account of both parties’ argument, with the recourse to respective quantitative data, in order to substantiate the claim on infeasibility of treating protectionism as a cure for global and European economies’ maladies. The Impact of Protectionism on Crisis and Post-Crisis Developments According to Henn & McDonald (2011), trade protectionist...
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...welfare. E) None of the above. Answer: C Question Status: Previous Edition 2) The opportunity to exploit economies of scale is one of the gains to be made from removing tariffs and other trade distortions. These gains will be found by a decrease in A) world prices of imports. B) the consumption distortion loss triangle. C) the production distortion loss triangle. D) Both B and C. E) None of the above. Answer: E Question Status: Previous Edition 3) Judging by the changes in the height of tariff rates in major trading countries, the world has been experiencing a great A) trade liberalization. B) surge of protectionism. C) lack of progress in the trade-policy area. D) move towards regional integration. E) None of the above. Answer: A Question Status: Previous Edition 4) The World Trade Organization (WTO) was organized as a successor to the A) IMF. B) UN. C) UNCTAD. D) GATT. E) the World Bank. Answer: D Question Status: Previous Edition...
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...Assignment 1 Gains from trade * Domestic competitive enhancement * Advantage from advance technology * Higher sales and profits * Increase the existing product sale potential * Extend market share globally * Less dependent on existing/domestic market * Optimize the use of world resources * Economies of scale * Cheaper goods * More varieties and qualities goods to consumer * Increase in world’s total outputs * Higher standard of living * Jobs creation * Encourage consumption Drawbacks from trade * Loss jobs in home country * Natural resources exhaustion * More dependent on foreign countries * Small countries doesn’t enjoy the international trade * Difficult to maintain close relationship between buyers and sellers * Over specialization * Danger of starvation * Disagreement between sellers and buyers * Local production may suffer * Local production may be overshadowed by international competitors * Wage inflation Impact of trade liberalization benefits Both consumers and companies can ultimately benefits from trade liberalization. For consumers, trade liberalization will provide lower prices of goods and also extend the range of quality goods and availability of services. For companies, they can benefits from trade’s risk diversification and channels resources to the place that contributes to the highest return. Moreover, it would facilitate competitions, investments and...
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