GMS 724 Lecture 4: GMS724 - Week 4 - Chapter 6 - Governmental Influence on Trade

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Explain the rationales for governmental policies that enhance and restrict trade. To describe the potential and actually effects of governmental intervention on the free flow of trade. To illustrate the major means by which trade is restricted and regulated. All countries seek to influence trade (tariffs), and each has economic, social, and political objectives. Are less likely retaliated against effectively by small economies. Less likely to be met with retaliation if implemented by small economies. May decrease export jobs because of price increases for components. May decrease export jobs because of lower incomes abroad. Infant industry: argument for protection holds that governmental prevention of import competition is necessary to help certain industries move from high-cost to low-cost production. Why countries seek protection to promote industrialization o. Brings investment funds: diversifies the economy o o o. Considerable governmental interference in international trade is motivated by. Political rather than economic concerns o: maintaining domestic supplies of essential goods o.