Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Trade and Investment Policies,Trade and Investment Policies,Learning Objectives,To see how trade and investment policies have historically been a subset of domestic policies,To examine how historical attitudes toward trade and investment policies are changing,To see how global links in trade and investment have made policymakers less able to focus solely on domestic issues,To understand that nations must cooperate closely in the future to maintain a viable global trade and investment environment,Learning ObjectivesTo see how,Rationale and Goals of Trade and Investment Policies,National Sovereignty,Standard of Living,Quality of Life,Foreign Policy,Rationale and Goals of Trade,Rationale and Goals of Trade and Investment Policies,Government policies are designed to regulate,direct,and protect national activities.The exercise of these policies is the result of national sovereignty,which provides a government with the right to shape the environment of the country and its citizens.,The domestic policy actions of most governments aim to increase the standard of living of citizens and to improve the quality of life,and to achieve full employment.,These policies affect international trade and investment indirectly.,Rationale and Goals of Trade a,Rationale and Goals of Trade and Investment Policies,(cont.),In more direct ways,a country may also pursue technology transfer from abroad or the exclusion of foreign industries to the benefit of domestic infant firms.,Government officials can also develop regulations on imports to protect citizens.,Nations institute,foreign policy,measures designed with domestic concerns in mind but explicitly aimed to exercise influence abroad.,A major foreign policy goal is national security.,Rationale and Goals of Trade a,The Price of Protectionism,Industry,Total Costs toNumber ofCost per,ConsumersJobs SavedJob Saved,(in$millions),Textiles and apparel,$27,000640,000$42,000,Carbon Steel,6,8009,000$750,000,Autos,5,80055,000$105,000,Dairy products,5,50025,000$220,000,Shipping,3,00011,000$270,000,Meat,1,80011,000$160,000,The Price of ProtectionismIndu,The Effects of Tariffs,Increase,Inflationary pressures.,Special interests privileges.,Government control and political considerations in economic matters.,The number of tariffs they beget via reciprocity.,Weaken,Balance-of-payments positions.,Supply-and-demand patterns.,International understanding(they can start trade,wars).,Restrict,Manufacturer supply sources.,Choices available to consumers,Competition.,The Effects of TariffsIncrease,The International Trade Organization,In 1948,the ITO represented an agreement among 53 countries to:,Aid in international commercial policies,restrictive business practices,commodity agreements,employment and reconstruction,and economic development and international investment.,It developed a constitution for a new United Nations agency.,The ITO was never implemented.,The International Trade Organi,The General Agreement on Tariffs and Trade,GATT started in 1947 as a set of rules to ensure nondiscrimination,transparent procedures,the settlement of disputes,and the participation of the lesser-developed countries in international trade.,GATT used tariff concessions to limit the level of tariffs that would be imposed on other GATT members.,The,Most Favored Nation,clause calls for each member country to grant every other member country the same treatment that it accords with any other country with respect to imports and exports.,The General Agreement on Tarif,世界经济教学资料-4,The World Trade Organization,The WTO was introduced in 1995 and administers international trade and investment accords.,In 2002,the Doha Round ended the first stage of implementation.The aim is to further hasten implementation of liberalization to help the impoverished and developing nations.,The World Trade OrganizationTh,What WTO Means to Different Industries,Banks will be allowed to compete freely in South Korea and other places where they are restricted.,Insurance companies will be able to sell policies in India,one of the Worlds most tightly closed markets.,Movies will have better protection from Thai film counterfeiters.,Pharmaceuticals will have better protection from Argentine imitators.,Computer software makers will have better protection from Brazilians who rip off copyrighted programs.,Gainers,What WTO Means to Different In,Glassware tariffs as high as 30 percent on inexpensive drinking glasses will be reduced,threatening some 40,000 jobs.,Textiles will gradually lose quotas and tariffs that protect 1.1 million U.S.workers-and add 50 percent to wholesale prices of clothing.,Peanuts will lose quotas that limit imports to a handful and that protect 19,000 American farmers,.,Dairy imports of foreign cheese,now limited to 19,000 tons a year,will go up,hurting 240,000 U.S.farmers.,Sugar import ceilings,now 25 percent of the nine m