B. buy foreign currency because the tariffs will tend to make the domestic currency appreciate…
They can lead to regional trading blocs then restrict trade. Copyright. All Rights Reserved by 4.…
Import restrictions protect domestic industries, having a positive effect on employment, as decreasing imports and increasing domestic production also increases domestic employment. Fewer unemployed people would decrease poverty rates and would increase wealth of those who are in work. Lower unemployment would decrease the amount of money spent on benefits and government could use the money to spend elsewhere, for example on health, education, public goods which would therefore increase welfare ever more.…
A. Contend that even within the developing world, it is protectionist policies, not trade and investment liberalization, that result in environmental and social damage…
Expanding markets for agricultural products and support international economic development, further developing alternative markets for agricultural products and activities, providing financing needed to…
create such products. Therefore causing the need for import and export, and trade. All of these…
Import and trade restrictions are implemented with the belief that they will help protect jobs of a specific industry and increase employment in those industries. Short term, the workers of these industries are the ones who will benefit from the import restrictions, as their jobs will be protected. Additionally, it will improve the economy with an increase in the demand for domestic goods, which will boost the country’s GDP. Eventually, the long-term effects of these restrictions will lead a decline in overall employment, an increase in foreign goods and an increase in domestic goods. The export industry will be adversely affected by the restrictions since we pay for our imports with our exports. If fewer goods are being exported, the jobs in the export industries will decline and there will be less of a demand from other countries to trade goods.At first, it appears the thing…
2. Over the past decade, the free trade movement has come under increasing fire as markets have opened and barriers to trade have fallen. Discuss the arguments against and for free trade, considering the perspective of both more developed and less developed nations. However, do you believe as international business student that benefits of free trade outweigh the drawbacks? Why or why not?…
c. Economic growth in one country must come at the expense of economic growth in another, therefore countries must protect domestic industry in many instances…
A) a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S.…
The increasing popularity of fair trade has drawn criticism for a variety of reasons. Supporters and…
One of the biggest pros of protectionist trade policies is that it provides job security in domestic industries, especially big industries like the automobile industry, which employees hundreds of thousands of Americans. General Motors for example; in having to compete with so many foreign companies that are able to sell cars at a lower cost, forces them to close plants, laying off thousands of people. This not only affects the auto industry, but also businesses that affiliate with them, causing a rippling effect, which in the worst case scenario, can devastate our whole economy.…
The world's poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have too many people given available work opportunities; and they are poorly educated. Free trade cannot possibly be in the interests of such nations! Discuss.…
____2.If Shawn can produce more donuts in one day than Sue can produce in one day, then…
Yue Zhao School of Management, Southwestern University of Finance and Economics Wenjiang Distrcit, Chengdu 611130, China E-mail: zhaoyueyy@gmail.com Abstract The implementation of a trade policy will have different effects on the different interest groups. The benefits of producer and consumer are often opposite. In order to look out an appropriate trade policy, we should balance the benefits of producer and consumer when we formulate trade policy. Keywords: Trade Policy, Producer, Consumer, Benefit Whether the government takes up the freedom trade policy or the protective trade policy, it will affect two interest groups: one is the native produce corporation; The other one is the native consumers. Generally speaking, the free trade policy is better to the consumers, but this will bring big challenge to the native producers. However, if the government implements protective trade policy to prohibit the foreign goods from coming into the native country, this will short down the supply of foreign goods and the consumers’ choices. This kind of policy makes the consumers have to spend more money on the import goods. Every coin has two sides, so is the foreign trade policy. The enterprises’ and the consumers’ benefits are controversial, so the government should balance them, when the government sets up the foreign trade policy. 1. The introduction of the problem The foreign trade policy can’t protect the producers’ and the consumers’ benefits at the same time, so when we set up the foreign trade policy, we should obey this principle: Maximize one’s benefit at the condition that the other one’s lest loss, in order to get overall benefit. To an enterprise with low level of productive, it may hope to stand stable in the native market; however, to an enterprise with high level of productive, it may hope to get a large space in…