BERNIE SANDERS AND A BAD CASES OF PROTECTIONISM FT. RAY BANS, OAKLEY’S

IN CASE YOU DON’T KNOW BY NOW... FREE TRADE= Do not restrict imports/exports from/to other countries Mutual giving and receiving Very common among developed countries

Benefit from comparative advantage Options and gain from lower prices Top export destinations of US: Canada,Mexico, China,Japan,and Germany. Top import origins:China,Canada , Mexico,Japan and Germany . Pros Benefit from comparative advantage Options and gain from lower prices Employment opportunities Key to economic growth Foreign exchange growth Cons Crappy work environments (most of the time) Low wages (most of the time) Environmental issues Increased unemployment

Protectionism (in simpler forms)= Government actions/policies that restrict or restrain international trade (intent of protecting local businesses and jobs from foreign competition) Tariffs Quotas Subsidies Very few TRUE protectionist countries

BUT APPARENTLY BERNIE THINK IT’LL WORK... MOST PROTECTIONIST COUNTRIES PROS Moves jobs to the US Re-Emergence of middle class National Pride? CONS Potential Trade War Reduce our standards of living May not actually protect our jobs BUT APPARENTLY BERNIE THINK IT’LL WORK...

BAD CASE OF PROTECTIONISM Bernie Sanders believes that the top priority of any trade deal should be to help American workers He believes that free trade agreements like NAFTA, Permanent Normal Trade Relations with China, and the U.S.-Korea Free Trade Agreement have allowed too many American jobs to move overseas. For this reason he has been a leader in Congress in the fight against the free trade agreements that have been negotiated over the past three decades

Ray-Ban is the global leader in premium eyewear market and by far the best- selling eyewear brand in the world. In 1999, Bausch & Lomb sold the brand to the Italian Luxottica Group for a reported $640 million (MMMAAAJJOOORRR MONOPOLY). Heavily endorsed/worn by celebrities

FREE TRADE= BBBUUEEEENNNNOOOOOOO IN THE CASE OF RAY BANS (and many more companies)... Environmental benefits Better quality Not using our resources And we still get to look good :)

Environmental Benefits vs. Oakley Production, manufacturing, and assembly production for Oakley are handled in Foothill Ranch, CA. MORE CO2 EMISSION DUE TO PRODUCTION PROCESSES WE DON’T NEED IT IN THE US

Better Quality Use crystal lenses, which are tinted on the back and made of glass “We don't have plastic lenses," Offer lenses with UV protection/ polarized lenses Ray-Ban focuses on long-term quality, making sure the materials used don't peel or change their shape with wear and tear. "You're not just paying for the name. You're paying for the craftsmanship,"

Not Using Our Resources If we promoted a protectionist country, we would have to use up all of the resources to produce this product (resources that we could be using for other things)

SUGGESTIONS FOR BERNIE 96 percent of economists agreed, “Freer trade improves productive efficiency and offers consumers better choices, and in the long run these gains are much larger than any effects on employment.” Economists at the Petersen Institute for International Economics estimated the economic benefits from the expansion of technology ,and they generated “an increase in US income of roughly $1 trillion a year,” which translates into an increase in “annual income of about $10,000 per household.” Production process at a lower cost than their domestic competitors Access to these low-cost foreign inputs allows American businesses to decrease their production costs and consequently increase their total output, making the nation as a whole much wealthier than it otherwise would have been.

Sources http://www.investopedia.com/terms/f/free-trade.asp https://ustr.gov/trade-agreements/free-trade-agreements http://greengarageblog.org/12-important-pros-and-cons-of-free-trade http://brazilianbubble.com/looks-whos-talking-here-is-a-rank-of-the-most-protectionist-countries-in- the-world-and-guess-what-the-uk-makes-it-to-the-top-5/ http://nlcatp.org/6-essential-pros-and-cons-of-protectionism/ http://money.cnn.com/2014/06/24/luxury/cost-of-sunglasses/ https://fee.org/articles/bernie-is-wrong-trade-is-awesome-for-the-poor-and-for-america/