February 4 MOS Lecture

February 4 MOS Lecture - February 4 Lecture Free Trade...

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February 4 Lecture Free Trade: - government do not make any restrictions on what citizens can buy and sell in another country o We do not have absolute free trade, because we still have restrictions Instruments of Trade Policy: - Tariffs – add to alcohol and tobacco - Subsidies – cheaper for our famers and manufacturers to sell across the world - Import quotas and “voluntary” export restraints – flux of automobiles from Japan – put a limit on number of cars that could come in; Canada implied to Japan to export as many cars, build plants here in Canada - Local content requirements - - Administrative policies - Antidumping policies – American’s angry at Canada for dumping lumber into the states at a lower costs (because we have more lumber, cheaper for us then them) The Case for Government Intervention Political Arguments for Intervention 1. Protecting jobs and Industries – Beer Industry, can’t get discounts on beers 2. National Security – Radar that can see through ice 3. Retaliation – not let others get away with something – trade actions – giving
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February 4 MOS Lecture - February 4 Lecture Free Trade...

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