《自由贸易过时了么？》分析展示.pptVIP

Free Trade or Intervention? Analysis on Is Free Trade Passe? the comment on it CONTENT Structure of Is Free Trade Passe? New Trade Theory ------New Argument against Free Trade Strategic Trade Policy Government Intervention A country can raise its national income at other countries expense if it can ensure the domestic company gets the excess returns. EXAMPLE Boeing VS Airbus External Economies How to Identify Where Externality Exerts Protection for industries that yields positive externalities is beneficial. Critique of the New Interventionism Empirical Difficulties the government can not make that informed decisions in strategic trade policy externalities are difficult to calculate Entry new firms will dessipiate the excess returns. General Equilibrium information burdens increased Political Economy Case for Free Trade retaliation and trade war -------beggar-thy-neighbour policy European telecommunications equipment industry suffered -------prisoners dilemma domestic politics -------group pressures Stucture of the Comment by Komlos My View on  Free Trade Intervention Free trade is the eternal truth of international trade. 2.Intervention is necessary in reality. Truth: Free Trade constant return and perfect competition ------------optimal theory increasing return and imperfect competition --------------in the rule of thumb as the rule of game for policy critique from Komlos is not that sound 1. examples 2. models 3. warn of caution Truth: Free Trade avoid retaliation and trade war reduce or eliminate the difficulty of empirical calculating reduce the risk of politics expectation for peaceful and profitable international trade environment Intervention: Necessary market is imperfectly competitive there are increasing returns to scale 2.intervention does not necessarily lead to retaliation and tra