imch11分析和总结分析和总结.pdfVIP

CHAPTER 11 CONTROVERSIES IN TRADE POLICY Chapter Organization Sophisticated Arguments for Activist Trade Policy Technology and Externalities Imperfect Competition and Strategic Trade Policy Case Study: When the Chips Were Up Globalization and Low-Wage Labor The Anti-Globalization Movement Trade and Wages Revisited Labor Standards and Trade Negotiations Environmental and Cultural Issues The WTO and National Independence Case Study: The Shipbreakers of Alang Summary CHAPTER OVERVIEW While the text has shown why, in general, free trade is a good policy, this chapter considers two controversies in trade policy that challenge free trade. The first regards strategic trade policy. Proponents of such activist government trade intervention argue that certain industries are desirable and may be under funded by markets or dominated by imperfect competition and warrant some government intervention. The second controversy regards the recent debate over the effects of globalization on workers, the environment, and sovereignty. While the anti-globalization arguments often lack sound structure, their visceral nature demonstrates that the spread of trade is extremely troubling to some groups. As seen in the previous chapters, activist trade policy may be justified if there are market failures. One important type of market failure involves externalities present in high- technology industries due to their knowledge creation. Existence of externalities associated with research and development and high technology make the private return to investing in these activities less than their social return. This means that the private sector will tend to 71 invest less in high technology sectors than is socially optimal. While their may be some case for intervention, the difficulties in targe