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Unformatted text preview: Part I US commertial policy & Constitution gives the authority of making commertial policies to the Congress & The 16th Amendment: Federal Government collects income taxes ! tari/ reduction & 1930 - Smoot-Hawley Tari/: Huge increase in tari/ ! deepen the Great Depression; an act of log-rolling & 1934 - Reciprocal Trade Agreement Act: The President can negotiate with trading partners ! tari/ reduction & End of 2nd world war - IMF, Worldbank, GATT (planned to establish ITO instead of GATT) & GATT Rounds: Kennedy Round ! Tokyo Round ! Uruguay Round & Uruguay Round: reduce tari/, reduce agricultural subsidies, face out tex- tile quotas, enforce intellectual property rights, set up the WTO & TRIP: agreement on trade-related aspects of intellectual property rights & TRIM: agreement on trade-related aspects of multinational investments & WTO Rounds: 1999 - Seattle Round: failed; 2001 - Doha Round: no progress due to disagreement on agricultural subsidies & Domestic Industry Protection: Antidumping law, Countervailing duty (o/setting export subsidies), Escape clause (temporary protection) & Antidumping law: 1. investigated by DOC (if dumping) & ITC (if injuring domestic sector) 2. fair price = cost + 10% general expense + 8% prots = 1 : 08 (1 : 10 cost ) 3. dumping margin = 0, if market price fair price = fair price - market price, if market price < fair price Remark 1 if there are multiple periods with di/erent market prices, cal-...
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This note was uploaded on 03/20/2008 for the course ECON 333 taught by Professor Yavas,cemilepan,lu during the Fall '06 term at Pennsylvania State University, University Park.
- Fall '06