BSB119 Lecture Notes - Red Tape, Intellectual Capital, Voluntary Export Restraints
Document Summary
Lecture 5: trade and investment: motives for government intervention. Political and economic motives: instruments of intervention in trade tariff and non-tariff barriers, host governments and mnes. Theoretically free trade brings economic gains (smith; ricardo; heckscher-ohlin) Static benefits: ib and consumers can locate or source production in countries where products can be produced most efficiently. Dynamic benefits: larger market access and competition stimulate best practice, investment and innovation. International e-business - the purchase and delivery of products and services online - Political motives: protection of domestic jobs and industries. Eg australian tariffs on foreign cars: national security - key industries, encryption. Successfully made the argument that because semiconductors are integral to defense products it would be dangerous to rely solely on foreign imports. Us threatened to impose 100% tariffs on chinese goods if china did not start to actively enforce intellectual property laws: retaliation. Us & china - intellectual property laws: protection of consumer welfare.
