...A Report On “Impact of protectionist trade policy on the domestic industry and economy” Course Name International Economics Course Code FIN: 2210 Submitted To: Shaikh Masrick Hasan Lecturer Department of Finance Jagannath University Submitted By: Sohel Rana On behalf of Group-06 2nd Year 2nd Semester, 6th Batch Department of Finance Jagannath University Date of Submission: 22-02-2014 Group Members SL. NO. | NAME | ID NO. | 1 | SOHEL RANA | B 110203076 | 2 | NURNOBY RAHMAN | 115234 | 3 | UZZWAL HALDER | B 110203046 | 4 | IMAM HOSSAIN | B 110203026 | 5 | FARHANA BHUIYAN | B 110203106 | 6 | SUMAIYA YASMIN | B 110203104 | 7 | HAFIZUR RAHMAN | B 110203025 | 8 | FATEMA AKTER | B 110203006 | 9 | KHALILUR RAHMAN | B 110203055 | 10 | TOHIDUL ISLAM | B 110203024 | Letter of Transmittal Shaikh Masrick Hasan Course Coordinator Money and Banking Dept. of Finance Jagannath University Subject: To submit a report on “Impact of protectionist trade policy on the domestic industry and economy” Sir With a great respect, we are informing you that we have prepared a report on “Impact of protectionist trade policy on domestic industry and economy.” We feel great pleasure for submitting this report to you, which will...
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...01. What is trade Protectionism? Trade protectionism is basically a rules and regulations of a government to maintain or to make a limitation on the import of goods and services to protect/promote domestic product and also to create new jobs. Basically Protectionism is the economic policy of government to save our domestic product and industry by imposing tariffs on imported goods, restrictive quotas, and also variety of other government regulations to prevent foreign product not to take -over of domestic markets Here the government gives an instructions and objectives on which product can be imported in the country and which products cannot be imported from the other part of the nations. Domestic products mean the products, which is made in own industries. These are the industries face tremendous pressure to maintain competitive market prices of their products with foreign goods. That is why government uses trade protectionism to develop the domestic products and also helps the domestic product industries to compete in global market. The supporters of trade protectionism believe that it allows domestic producers to survive and grow, producing more jobs. Because if the domestic product industries develop well and have the ability to compete in the global market, later on there will be more jobs and people will be employed and also be skilled. In the 17th and 19th century, business people used to follow an economic principle called mercantilism. The main theorem...
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...Arguments for Free Trade among Nations as opposed to Arguments for Protectionism In economics, trade, both nationally and internationally is a subject that is highly debated. Trade affects every one in every nation, has a significant impact on a country’s standard of living and can be used to foster new ideas and products. There are currently two opposing policies of how to conduct trade, protectionism and free trade, also called laissez-faire. A county’s comparative advantage at producing certain products causes many debates over why one way of trade is better than another. Tariffs, embargo’s and quota’s that are put on trade are forms of protectionism, which is the restriction of trade between states/countries. Protectionism is preferred in some groups for a variety of reasons, one of the reasons is that, it is thought that protectionism can protect ‘infant’ or new companies and industires.1The idea behind this is that it helps protect domestic companies that are just starting from foreign competitors that could introduce products at a lower cost. Tariffs are then set up, to make the foreign goods artificially expensive allowing the new or ‘infant’ firm to set up until they are able to compete on equal footing.1 Another argument in favor of protectionism is that one country might be able to use it as a threat against another country to force a reduction or removal of their protection against its exports.3If the threat worked then that country using it as such would gain...
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...The Impact of Trade Protectionism on China’s Export Enterprise 1. Introduction The past several decades are commonly viewed as a period of widespread liberalization within the international trade. Besides, since reform and opening up in China from 1978 to now, over 30 years, China's economy has remained about 10% of high-speed development which called the creation of the "China miracle" (JU, 2008). During this era, China also became a big orient export country, which occupies a large place in the international market. Thus, American people considered that China export pose an economic threat to the United States even to the world. Other countries tried to use trade protectionism to limit the export from China and boost their own economy recovery. Trade protectionism means that government set up some specific barriers to trade in order to protect its own economy. However, it has a negative impact on China’s export enterprise, especially for small and medium-sized companies, so the countermeasures should be taken to resolve this issue. The purpose of this article is to explore several problems that trade protection bring to China’s export enterprises at first and then focus on some effective solutions to help these companies. 2. Situation Because of the trade protectionism, China’s private exporters from different kinds of industry are suffering obvious reduction of profit, and they are mainly reflected in labor-intensive, low-cost exporters, tight liquidity and a low...
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...Content page pages Question one 1.1 identify all stakeholders 2 1.2 Unitarian perspective 3 1.3 Maxim of duties 1.4 clashes of rights 4 1.5 an alternative ethical approach Question two * introduction 5 * corporate social responsibility * definition of corporate social responsibility * Company profile * RBS social policy 6 * definition of social policy * corporate social responsibility activities in RBS * conclusion A case study-The financial crisis This case is examining the dispute between the government and the banking sector .it exposes the conflict between the need for tightly regulated banking sector and the need to keep the bonus driven structure. The UK Govt are planning to put forward a regulation reform that will force the banks to separate their retail banking from the rest of their businesses and above all the riskier investment operations and to increase the amount they have to keep in capital in the bank as a buffer against future shocks. However not all stakeholders agree with the UK...
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...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 and hence do not attend school) • Child Labour & International Business,Globalisation and trade 1.Role of Business in the economy of child labour (firms may employ children directly,goods and services produced by children are purchased by other firms). 2.Child labour creates unfair CA for developing countries (lower labour costs,transferring jobs to the third world) 3....
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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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...Procédure budgétaire Cas SPIE Maroc Définition : La gestion budgétaire est fondée sur l'évaluation des moyens à mettre à la disposition des responsables pour atteindre les objectifs fixés. Il s'agit donc avant tout d'un instrument de pilotage et de simulation, permettant de conforter les dirigeants dans leurs décisions. C’est l’aboutissement d’un processus de planification initié au niveau stratégique. Etude de cas (SPIE Maroc) : Le budget d’une année est initiée et élaborée par les contrôleurs de gestion qui sont supervisés par la RAF (responsable administrative et financière), qui ensuite présente le budget (nommé livre bleu) pour approbation au niveau de la direction générale et qui sera ensuite présenté à la maison mère en France. L’établissement du livre bleu est déclenché en Décembre et concerne l’année N+1. Il consiste en la consolidation des différents budgets prévisionnels des différents centres de responsabilités comme suit : 1. Le budget des ventes est fixé en fonction du portefeuille commandes et marchés dont l’entreprise a possession et du portefeuille potentiel qu’elle prévoit détenir. Ce budget est élaboré en étroite collaboration avec les opérationnels nommés chargés d’affaires (ingénieurs en charge de l’exécution des différents marchés) agissant au sein des départements dédiés aux installations électriques haute et moyenne tension et aux installations de télécommunication d’un côté, et d’un autre côté en collaboration avec les commerciaux...
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...Roberto Del Toro Mrs. Fortier Macro Economics 8 December 2009 Chapter 13, Week of November 30, Chinese overinvestment could strain trade 1. According to the article, the increase in investment will ultimately lead to lower prices for Chinese goods because of overcapacity. Explain in terms of the aggregate demand and aggregate supply model what would have to happen for this scenario to take place? Well first the aggregate supply is the total of all planned production for the economy. The most important word in that definition is the word, planned. It is stated in the article that the only planned productions happening are the “Industries including steel, cement, and plastics which are still blindly expanding” (Article). Now the aggregate demand is the total of all planned expenditures in the entire economy. The only industries that are planned for China are the industries of steel, cement, and plastics. The only way this scenario takes place is if those main industries stop expanding. If that happen the result would be the crowding out effect which would result in the rise of interest rates. The crowding out effect looks like thisNow if that does happen China needs to be planning ahead with the Ricardian Equivalence Theorem. This is the proposition that an increase in the government budget deficit has no effect on aggregate demand. Joerg Wuttke said “existing overcapacity could force producers to slash prices to export surplus goods, possibly fueling demands abroad...
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...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 sides and their respective governments in respect of the basic issues inherent in this controversy. Let me first summarily describe the facts of this dispute, and the classical dichotomous roles of the governments, on the two sides. History of trade dispute between Boeing and Airbus: An overview Until 1980, US commercial aircraft industry enjoyed a de facto monopolistic position in the...
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...from Americans and American families while giving them to people from other countries, some people may be against it. Supporters believe that in the long run, it could help American jobs and the economy because of the reason that as foreign incomes rise, it helps US employees in the long run. What industries or companies may have an interest in outsourcing to your countries of research? One company that seems to be interested in outsourcing to other countries is AT&T. India is very popular for outsourcing jobs that have to do with telecommunication. AT&T’s interest in India would be caused by their willingness to work for cheaper wages than Americans and also because one of their top languages is English. What barriers to trade would prevent an American company outsourcing to one of those countries? Government subsidy to a particular domestic industry could be a common barrier. Subsidies make those goods cheaper to produce than in foreign markets. Also tariffs could stop them from wanting to outsource their company. Do you think outsourcing would promote or hinder a healthy American economy? Explain. I think outsourcing promotes a good, healthy American economy and then the other countries will believe we are trying to help them and their economy. But it will also hinder the healthy American economy because while we are benefiting other countries, our country won't have any jobs available for its own...
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...of taxpayers, might have been even greater. Economists refer to the value of an expenditure in its highest alternative use as its "opportunity cost." The concept of opportunity cost is reasonably intuitive. At the household level, if a person spends $100 on a night on the town, that $100 is no longer available to buy necessities, like food. Similarly, if a government spends $100,000 on a bridge that few people will use, that money is not available to be spent on education, or health care, or any other government priority. Because of taxes and other feedback mechanism in an economy, the analogy between the government and a household is not perfect. But in the presence of a budget constraint, all spending decisions, at the margin, imply trade-offs. Ideally, a government would strive to structure its expenditures so as to achieve a return to society that is roughly similar for each dollar spent. Subsidies can easily upset that balance. Consider a hydro-electric project that also provides water to irrigate adjacent farmland. A cubic metre of water from its reservoir has a high value when it passes through turbines and generates electricity, but also to a farmer growing thirsty crops. Nevertheless, the incremental value of an additional cubic metre of water may well be much higher when used to generate electricity than to irrigate the farmer's crops. Policies - such as subsidies that allow the farmer to pump out the water from the reservoir at a very low cost, or that artificially...
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...Abstract This paper will analyze the justification and effectiveness of government subsidies. This paper will discuss an industry that is subsidized by the U.S. government and address the following: why the U.S. government subsidizes the industry, how the subsidy alters the market outcome, who gains and who loses from the government intervention, any beggar-thy-neighbor issues, and why the subsidy is or is not justified. Introduction Many industries rely on government assistance in both good times and bad. “The potential micro and macro failures of the marketplace provide specific justifications for government intervention” (Schiller, 2010). Government interventions “encompass a wide range of regulatory, fiscal, tax, and legal actions that modify the rights and responsibilities of various parties in society. Interventions can increase or decrease costs to particular groups, effectively acting either as a subsidy or as a tax” (Subsidies and Market Interventions, 2013). Since the 1930’s the government’s role has assumed more responsibilities including “maintaining macroeconomic stability, protecting the environment, and safeguarding the public’s health” (Schiller, 2010). Government Intervention A government subsidy is defined as “monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest” (Subsidy, 2013). An example of an industry that is subsidized by the U.S. government is the energy market...
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...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 sides and their respective governments in respect of the basic issues inherent in this controversy. Let me first summarily describe the facts of this dispute, and the classical dichotomous roles of the governments, on the two sides. History of trade dispute between Boeing and Airbus: An overview Until 1980, US commercial aircraft industry enjoyed a de facto...
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...| Business Case Analysis | MEMO | Date: 9 October 2014 | | To: KIOTO Group Senior Management | | From: | | Re: Your deteriorating position in the global solar thermal market race | | European market is changing, your customers are backward integrating into your own business, the Chinese are dominating through price dumping and while your lobbying efforts are admirable, do you really think it is enough to put the Chinese dragon to rest? Emerging markets show high potential particularly due to your tremendous efforts in landing the KSA tender and establishing a track record in the region. Your white label products got you so far but is it still the right approach in these changing times? Especially when the middle men are pocketing up to 82% between themselves, leaving you with a modest 10% margin. 1. PROBLEM: What is the main (underlying) problem/opportunity in this case? | In the face of the intense pressure from competition, whether it be the Chinese price dumping strategy or the new threat from the backward integration of heating companies, and the inefficiency of the current distribution chain via plumbers and installers that is hiking up the cost, KIOTO Group has to decide whether it is enough to rely on their technological and quality advantages, this requires a deeper look into what kind of product(s) to focus on and who is their customer really (wholesale vs retail) and where is this customer located in order to establish a strong competitive position...
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