Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

MBA 713 - Chapter 09

993 views

Published on

MBA 713 - Chapter 09

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

MBA 713 - Chapter 09

  1. 1. Chapter 9 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 1 Formulation of National Trade Policies
  2. 2. Learning Objectives • Review pros and cons of governmental intervention in international trade • Identify advantages and disadvantages of adopting an industrial policy • Analyze how domestic politics affect a country’s international trade policies Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 2
  3. 3. Learning Objectives • Describe the major tools countries use to restrict trade • Specify the techniques countries use to promote international trade • Explain how countries defend against unfair trade practices Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 3
  4. 4. Rationale for Trade Intervention Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 4
  5. 5. Trade Policy Debate Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 5 Free Trade Fair Trade
  6. 6. Industry Arguments Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 6 National Defense Infant Industries Strategic Trade Theories Maintenance of Jobs
  7. 7. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 7 National Defense •Raw Materials •Machinery •Technology
  8. 8. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 8 Government Protection Comparative Advantage Infant Industries
  9. 9. Maintenance of Jobs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 9 Existing Levels of Employment Relief from Competition
  10. 10. Strategic Trade Theory Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 10 Oligopolistic Industries Government Intervention Requests for Protection
  11. 11. Payoff Matrix: Profits from Developing a Nuclear Power Plant Design (in billions of USD) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 11 Areva Develop Do Not Develop Develop Do Not Develop Toshiba -1 -1 10 0 10 0 0 0
  12. 12. Payoff Matrix: Profits Resulting from a $2 Billion Subsidy to Areva (in billions of USD) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 12 Areva Develop Do Not Develop Develop Do Not Develop Toshiba -1 -1 + 2 = +1 10 + 2 = 12 0 10 0 0 0
  13. 13. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 13
  14. 14. Advantages and Disadvantages of Adopting an Industrial Policy Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 14
  15. 15. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 15 Economic Development •Export Strategy •Import Strategy
  16. 16. Industrial Policy Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 16 Opportunities Challenges Key Industries Competitiveness Politicians Special Interests
  17. 17. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 17 Public Choice Analysis •Interest Groups •Elected Officials
  18. 18. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 18
  19. 19. Barriers to International Trade Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 19
  20. 20. Tariff Barriers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 20 •Export Tariffs •Transit Tariffs •Import Tariffs
  21. 21. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 21 Three Import Tariffs Heading/ Subheading Stat. Suffix Article Description Units of Quantity Rates of Duty 2006.00 Fruit, nuts, fruit peel, other plant parts, preserved by sugar 2006.00.20 00 Cherries Kg 9.9¢/kg + 6.4% 2006.00.30 00 Ginger Root Kg 2.4% 2006.00.40 00 Pineapples Kg 2.1% Other, including mixtures: 2006.00.50 00 Mixtures Kg 16% 2006.00.60 00 Citrus Fruit; Peel of citrus or other fruit kg 6¢/kg 2006.00.70 00 Other Fruit and Nuts Kg 8% 2006.00.90 00 Other kg 16%
  22. 22. Impact of an Import Tariff on Demand for U.S. Made SUVs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 22 Gainers: Producers, suppliers, labor, dealers & communities associated with U.S. SUVs Losers: Domestic consumers, workers, producers & dealers associated with Foreign SUVs
  23. 23. Nontariff Barriers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 23 Numerical Quotas Numerical Export Controls Other Nontariff Barriers
  24. 24. Numerical Quotas Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 24 Tariffrateonwidgets Number of widgets 100,000 Imports above threshold Quota threshold 0 TL TH
  25. 25. Numerical Export Controls Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 25 Quantitative Trade Barriers Voluntary Export Restraint Embargos and Bans
  26. 26. • Product and Testing Standards • Restricted Distribution-Network Access • Public-Sector Procurement Policies • Local-Purchase Requirements • Regulatory and Currency Controls • Investment Controls Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 26 Other Nontariff Barriers
  27. 27. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 27
  28. 28. Promotion of International Trade Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 28
  29. 29. Government Subsidies Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 29 Opportunities Challenges Export Markets Foreign Imports Trade Patterns Efficient Producers
  30. 30. Foreign Trade Zones Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 30 Preferential Tariff Treatment Economic Development Customs Duties
  31. 31. Export Financing Programs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 31 Government-Owned Agencies Export-Import Bank of the U.S. Overseas Private Investment Corp.
  32. 32. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 32
  33. 33. Controlling Unfair Trade Practices Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 33
  34. 34. Unfair Trade Practices Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 34 International Trade Administration (ITA) International Trade Commission (ITC)
  35. 35. Countervailing Duty Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 35 Foreign Subsidy Ad Valorem Tariff
  36. 36. Antidumping Laws Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 36 •Price Discrimination •Predatory Pricing
  37. 37. Unfair Trade Laws Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 37 Opposition to Enforcement Protectionist Trade Barriers Harm to Consumers
  38. 38. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 38 Sudden Import Surges Safeguards
  39. 39. Summary of Discussion Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 39
  40. 40. Chapter 9 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 40 Formulation of National Trade Policies
  41. 41. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 - 41 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

×