Government Policy & International Trade I
How does a nation protect jobs and industries from foreign competition?
Imposing tariffs or quotas
What is benefit of "dumping" products in to foreign market?
They could gain market share at the cost of profit
Can you give us two example of case for integration?
Trade creation
Economies of scale
FDI attraction
Peace through interdependence
Stronger global bargaining power
Democratic Stability
Can you give us two example of case against integration?
Trade diversion
Loss of sovereignty
Uneven benefits
Adjustment costs for domestic industries and workers.
What are the risks of retaliating in trade dispute?
Trade war escalation, global slowdown
What does critics say about infant industry?
Temporary protection often becomes permanent, reducing innovation and efficiency
What are the five level of economic integration?
Free trade area (FTA)
Customs union
Common market
Economic union
Political union
What is the name of the treaty that formed EU?
Maastricht Treaty
What are the three strategic sector mentioned in the presentation?
Defense, Energy and Tech
What is the advantage and risks of strategic trade policy?
Industry could gain first-mover advantage
Could result in subsidiary war
What is the world's largest free trade area?
AfCFTA (African Continental Free Trade Area )
In addition to ASEAN what are the five countries that formed RCEP?
China, Japan, South Korea, Australia, and New Zealand