Thursday, October 20, 2011
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Chapter 11 (pp. 241-45, 248-255)
Use of Export Subsidies to Push
Exports
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Outline
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What are export subsidies?
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What are the effects?
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Small country
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Large country
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Can a country export too much?
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How should importing countries respond?
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Strategic Trade Policy
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Outstanding Trade Problems
A Sign of the Times
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Oct. 19, 2011: U.S. initiated unfair trade
case filed against Chinese exporters of
solar panels
http://www.nytimes.com/2011/10/20/business/global/us-solar-manufacturers-to-ask-for-duties-on-imports.html?_r=1&emc=eta1
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Oct. 12, 2011: U.S. considering a new
agricultural $5 billion subsidy program to
replace one likely to be cut in current
budget negotiations.
http://www.nytimes.com/2011/10/18/business/when-one-farm-subsidy-ends-another-may-rise-to-replace-it.html?emc=eta1
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What are Export Subsidies?
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Direct payments, the granting of tax relief,
subsidized loans to the nation’s exporters
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Low interest or subsidized loans to foreign
buyers of the nation’s exports
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- Fall '08
- Croucher
- International Trade, World Trade Organization, Protectionism, export subsidies, Outstanding Trade Problems
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