Chap005Political Economy Of International Trade课件.pptVIP

Chapter Political Economy Of International Trade Case: Agricultural subsidies and development Rich nations spend more than $300 billion a year to subsidize their farmers Subsidies create surplus production Surplus production leads to dumping and depressed prices UN estimates producers in developing nations lose $50 billion export revenue because of depressed prices Agricultural subsidies and development Rich countries of the developed world subsidize farm products Reasons To keep commodity prices low To favor politically active farmers Consequences Surplus production Depressed world prices