1. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Need to View the Globe Management of International Business EB 702

2. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business chapter 9 formulation of national trade policies

3. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Issues on Trade Intervention äShould a national government intervene to protect the country’s domestic firms by taxing foreign goods entering the domestic market or constructing other barriers against imports? äShould a national government directly help the country’s domestic firms increase their foreign sales through export subsidies, government-to-government negotiations, and guaranteed loan programs?

4. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Free Trade or Fair Trade? Free TradeFair Trade

5. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Industry-Level Arguments National Defense Infant Industry Maintenance of Existing Jobs Strategic Trade

6. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business National Defense Argument äCountry must be self-sufficient in critical raw materials, machinery, and technology or else be vulnerable to foreign threats. äAppeals to general public äProtects steel, electronics, and machine tools industries, and merchant marines

7. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Infant Industry Argument äImposition of tariffs to give U.S. firms temporary protection from foreign competition until firms are fully established äPowerful economic development strategy äWhich industries should be protected? For how long?

8. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Maintenance of Existing Jobs äJobs in high-wage countries threatened by imports from low-wage countries äForms of assistance äTariffs äQuotas

9. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Strategic Trade Theory Strategic trade theory suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in such oligopolistic industries. -10 -110 1000 DevelopDo Not Develop

10. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business National Trade Policies Economic Development Programs Industrial Policy Public Choice Analysis

11. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Economic Development Programs Export Promotion Strategy Import Substitution Strategy

12. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Industrial Policy When industrial policy is pursued, the national government identifies key domestic industries critical to the country’s future economic growth and then formulates programs that promote their competitiveness.

13. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Public Choice Analysis Special interest groups are willing to work harder for the passage of laws favorable to their interests than the general public is willing to work for the defeat of laws unfavorable to its interests.

14. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Reasons for Tariffs äTariffs raise revenues for national governments äTariffs act as a barrier to trade

15. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Tariff Barriers to International Trade Export/ Transit tariffs Import tariffs Ad valorem Specific Compound

16. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Impact of an Import Tariff on Demand for U.S.–Made Minivans Gainers: GM, Ford, and Chrysler dealerships; suppliers; workers; and the communities. Losers: Domestic consumers. Foreign producers, people and firms, incl dealerships in the US, workers and suppliers in Japan, and communities in Japan. Suppose the U.S. government imposes a $2,000 specific tariff on imported minivans

17. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Non-tariff Barriers äQuotas äNumerical export controls äProduct and testing standards äRestricted access to distribution networks äPublic-sector procurement policies äRegulatory controls äCurrency controls äInvestment controls äLocal-purchase requirements

18. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Tariff Rate Quota on Widgets A tariff rate quota imposes high tariff rates on imports above the threshold level.

19. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Forms of Nonquantitative NTBs äProduct and testing standards äRestricted access to distribution networks äPublic-sector procurement policies äLocal-purchase requirements äRegulatory controls äCurrency controls äInvestment controls

20. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Promotion of International Trade Subsidies Foreign Trade Zones Export Financing Programs

21. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Foreign Trade Zone on Mauritius

22. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Controlling Unfair Trade Practices äInternational Trade Administration (ITA) äDivision of U.S. Department of Commerce äDetermines whether an unfair trade practice has occurred äConfirmed cases transferred to U.S. International Trade Commission (ITC) äTwo types of unfair trade practices äGovernment subsidies äUnfair pricing practices

23. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Controlling Unfair Trade Practices Countervailing Duties Antidumping Regulations

24. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Objectives of Unfair Trade Practice Laws äPromote global efficiency by encouraging production in those countries that can produce a good most efficiently äEnsure that trade occurs on the basis of comparative advantage, not the size of government subsidies äProtect consumers from predatory behavior

25. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Thanks