{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Politics of Trade Barriers

Politics of Trade Barriers - Keiretsu(the word means system...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Politics of Trade Barriers Trade policy is an outcome of the political process. Any change in policy produces winners and losers who have an incentive to lobby for a legislative outcome in their own favor. On the other side, politicians need votes and money to stay in office. These are the sources of supply and demand for trade policy. Those who gain from free trade are numerous and gain only a little while those who gain from protection are highly concentrated in well-defined industry groups. It is easier, therefore, for protectionists to organize. Japan's Development Strategy high saving and investment rates; high investment in training and education MITI targeted industries with government-sponsored research, R&D subsidies, preferential access to capital, and temporary trade protection long-term transactions based on tradition are more common than those based solely on the market
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Keiretsu (the word means system) are affiliations between firms. 1. horizontal 2. vertical 3. distribution Keiretsu can create entry barriers for newcomers and engage in anti-competitive practices which reduce imports. Effects of Trade on the Environment It is sometimes argued that trade is bad for the environment because trade promotes economic growth and economic growth leads to environmental degradation in the form of pollution, depletion of resources, and degradation of the scenic environment. In developing countries, rural areas have seen large-scale soil erosion and water quality deterioration, deforestation, and declining soil productivity. Urban areas have experienced seriously diminished air and water quality. But, growth enables governments to tax and raise resources to reduce pollution and protect the environment. We see more environmental protection in rich countries....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern