The Regulatory Framework: Key Concepts
Have control systems to benefit
Businesses & Workers
Free Trade
Opportunities
Governments
Examples:
tarrifs,
subsidies,
import
quotas,
policies,
WTO & GATT
memberships,
etc
PEOPLE
Consumers
& Threats
Have control systems to protect
Chapter 7 - Discussion Questions
Martin Jacques - When China Rules the World – 10.04 m
https://www.youtube.com/watch?v=Og8zBhDDkEQ
1. Do you think that governments should consider Human Rights when granting
preferential trading rights to countries? What are the for & against arguments
and the concluding basis for your position?
2. Whose interests should be paramount concern of government trade policy –
the interests of producers (businesses and their employees) or those of
consumers?
3. Given the arguments to the new trade theory & strategic trade policy, what
kind of trade policy should business be pressuring government to adopt?
Case Study – GFC & Protectionism
GFC Explained - http://www.youtube.com/watch?v=Q-zp5Mb7FV0
1. Why do you think calls for protectionism are greater during sharp economic
contractions than boom periods?
2. Despite the sharp economic contraction during 2008-2009, the increase in
protectionist measures was fairly modest. Why do you think this was the case?
3. During 2008-2009, many developed nations gave subsidies to their automobile
producers. How might this distorted international trade? Was this a reasonable thing
to do given the circumstances?
4. What might occur if renewed economic slowdown triggered a wave of protectionist
measures around the world? Would protectionism protect jobs, or would it make
things worse?
5. The volume of world trade rebounded sharply in 2010 on the back of a fairly modest
growth rate in the world economy. What does this tell you about the nature of
international production in today’s global economy? What does this tell you about
the vulnerability of the world economy to any future trade wars?