MGCR 382 Lecture Notes - Lecture 15: Nominal Rigidity, Economic Equilibrium, Trade Wars
6 Sep 2016
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Document Summary
Mgcr 382 - lecture 15 - trade policy. It might be beneficial to a country but not to another. China put in place quotas on exports of rare-earth exports. Had an increase on the price on input products of technological products. Led to a dispute with other countries at the wto. Foreign firms dumping (settle the price of your products under the price of production. ) in. Predatory prey of entering a market, hoping to drive out competitors before you lose too much. Canada put on import duty to raise the price of steel. But the average condo went up in price in vancouver. Economic arguments for protection: fighting unemployment / job protection: Maintain employment in existing industries that risks replacement by foreign competitors. Usually comes in with electoral cycle: infant industries : Government kick-starts new industries in the face of established competitors. Deserve to be protected for a certain amount of time until they can fend for themselves.
