Government Policy and International Trade

1. International Business
Chapter Seven Government Policy and International Trade

4. Types of Tariffs
Fuente: https://www.slideshare.net/Gheblawi/lecture-4-tariff-chapter-6

5. Fuente: https://marketbusinessnews.com/financial-glossary/subsidy-definition-meaning/

6. Import Quotas

7. Effects of Tariffs on Consumption
Fuente: https://www.tutor2u.net/economics/reference/arguments-against-protectionism

8. Dumping Practices
Fuente: https://conceptodefinicion.de/dumping/

9. Antidumping Measures
Fuente: https://www.theparliamentmagazine.eu/articles/partner_article/eurometaux/new-anti-dumping-rules-three-ways-meps-should-stand-eu

10. Government Intervention
Fuente: https://s3-eu-west-1.amazonaws.com/tutor2u-media/subjects/economics/micro_government_intervention.jpg?mtime=20171014221819

11. Government Intervention
Political Arguments for Intervention
Protecting jobs and industries
Protecting national security
Retaliating
Protecting consumers
Furthering foreign policy objectives (US vs Venezuela)
Protecting human rights (ex. apartheid)

12. Economic Arguments for Intervention
The infant industry argument
Strategic trade policy
Government Intervention

13. Retaliation and Trade War
Krugman – strategic trade
policies aimed at establishing
domestic firms in a dominant
position in a global industry
boost national income at the
expense of other countries
These policies will probably
provoke retaliation
Help establish antidumping
policies and rules that
minimize trade-distorting
subsidies

14. Domestic Policies

15. Reasons supporting Free Trade
Fuente: https://medium.com/@andy_briggs/free-trade-a-dirty-phrase-33efd4a7e4b5

16. GATT & WTO
Fuente: https://www.google.com/search?q=gatt+to+wto&authuser=0&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiw3MPQ4IDkAhWLHc0KHZ-biw=1600&bih=740#imgdii=X4vm6L9jGR8eHM:&imgrc=yV221-RF26lBZM:

17. WTO: Experience to Date
• By 2016, 164 members who account
for 98 percent of world trade
• Strong early start, since late 1990s
unable to get agreements to further
reduce barriers
• Doha Round has shown very little
progress
• Limited protectionism returned
following global financial crisis of
2008-2009
• The Brexit vote and election of Donald
Trump also suggest a move toward
greater protectionism

18. • The Future of the WTO: Unresolved
Issues and the Doha Round
• The current agenda of the WTO
focuses on
• The rise of anti-dumping policies
• The high level of protectionism in agriculture
• The lack of strong protection for intellectual
property rights in many nations
• Continued high tariffs on nonagricultural
goods and services in many nations
• WTO: Experience to Date continued
• WTO as global police
• Positive effect
• Countries involved have mostly adopted
WTO’s recommendations
• Expanded trade agreements
• Global telecommunication and financial
services industries

19. The Future of the WTO: Unresolved
Issues and the Doha Round
• Protection of intellectual
property
• TRIPS agreement
• Market access for
nonagricultural goods and
services
• Most developed nations have
average tariff rates of 3.8 percent of
value
• Certain imports still have high tariffs,
which limits market access and
economic growth; Tariffs higher on
services than industrial goods
• WTO goal is to reduce tariff rates to
zero