[经济学]国际经济学基础Chapter 6.ppt

* Export Subsidies (cont’d) U.S: Export-Import Bank Foreign Sales Corporations provisions Europe: Common Agricultural Policy (CAP) U.S. vs China Coated free sheet paper Case study 6.3 Countervailing duty (CVDs) * 6.5 The Political Economy of Protectionism Fallacious argument 1 – “Trade restrictions are needed to protect domestic labor against cheap foreign labor.” The cost of labor is only partially determined by wages. If wages determine export, how can rich country export anything? Greater productivity may more than offset the advantages offered by low foreign wages. Comparative advantage * Arguments for protectionism Fallacious argument 2 – “Scientific tariffs are needed so that domestic producers can compete.” A scientific tariff raises the price of imports to the domestic price. This does increase domestic production but it also eliminates imports. * Arguments for protectionism Questionable argument 1 – “Trade restrictions are needed to reduce domestic unemployment.” Trade restrictions may reduce imports and lead to an expansion in the economy which will lower unemployment in the short-run. This conclusion hinges on there being no retaliation by foreign nations. * Arguments for protectionism Questionable argument 2 – “ Trade restrictions are needed to cure a balance of payments deficit.” As with the previous argument, trade restrictions may have this effect but the conclusion hinges on a lack of retaliation by other countries. Should be corrected by appropriate domestic monetary, fiscal and trade policies rather than with trade restriction. * Arguments for protectionism A qualified argument – “Infant industries need to be protected so that they can become established industries.” A new industry likely does not have the skills and experience to be a successful competitor in the international market place. To gain these skills the firm must be protected from competition for a limited period of time. * A qualified argument – Infant industries Criticism May