Class Notes (811,225)
Canada (494,571)

Poli Sci 2J03 - Jan 27, 2014

4 Pages
Unlock Document

McMaster University
Political Science
Robert O' Brien

Started on: 01/27/2014 C LASS N OTES FOR : P OLI S CI 2J03 McMaster University, Fall 2013 M ONDAY , JANUARY 27, Y Trade - One commodity for another Barriers to Trade - Tariffs - Quotas o Where a state says it will only accept a certain amount of goods from another country o Quotas because of an advantage of cheap labour?... o Quotas on the amount of Japanese cars that went into theAmerican market  Protection ofAmerican car makers o The reason why the gov’t would want to put in Quotas it’s because it wants to limit the flow of these products into the market  Example - Protection of textile makers o Quotas are an informal and temporary mechanism o Can still have access to the market, but just limited - Subsidies o Payment from the government to the private corporations o In the case of state owed industries to state owned industries o It would help these companies in the domestic market or help them defeat rivals in the foreign markets o One country’s subsidy is another country’s industrial policy or social program  Different organization of political economies  What might be seen as a natural practice in one country can be seen as a subsidy in another country. o Example  Canada and the United States - Dispute over soft wood lumber  In the United States if you are a lumber company and want to cut down trees, but this forest is most likely a private forest  In Canada if you are a lumber and want to cut down some trees, the forest is owned by the government  Algonquin park  private enterprise going in and logging?  Dispute about subsidies - the price that the Canadian gov’t charges to cut down trees is lower than the price that private companies in the United States charge to cut down trees.  Canadian system is artificially lowering the price of tress to Canadian companies. o Example 2  Aerospace  The United States funnels billions of dollars to theAerospace industry!  The European Union does so through Grants - Administrative regulations o These can interfere with the flow of goods and services o Technical things such as products meeting certain kinds of standards in order to be sold! o Japan preventing import of European Skis (different kind of snow?) Angie © McMaster University 1 Fall 2014 Started on: 01/27/2014 o VHS and Betamax - Japanese were flooding the European Market, etc. In order to protect the French gov’t said that all of them had to come through one particular port and one person that was doing the customs. - Trade laws o Countries have a whole set of rules and regulations to deal with trade o Regulations can become protectionist in form and content! o Example -- Subsidy issue  Dispute between Canada and the United States  Canada delivering subsidies  COUNTERVAILING DUTY  tax • It is supposed to make up for the subsidy that the Canadian gov’t is giving for the product. CVD • Impediment to trade • It aims at particular country and particular products • Abused by domestic user • Lobbying to have these duties put on products • Want to protect market against Canadian products! o DUMPING OF PRODUCTS  Flooding a market with a particular product at less than the cost of production  Selling it for less than the cost of producing in the hope that you will capture market share  With the hope of driving theAmerican producers out of business!  Goes across a wide variety of products  Allegation made by “rich” countries against “poor” countries  Rich countries put anti-dumping duties  The idea is that it’s supposed to bring the price back up to the normal one if they weren’t being dumped into the market Different mechanisms that gov’ts can use to interrupt the flow of goods! L IBERAL THEORY - Comparative advantage improves growth o Every country should specialize in the production of the goods or services in which
More Less

Related notes for POLSCI 2J03

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.