Trade Barriers

• Economie
• Secondary Education

Chapter 17

Section2: Trade Barriers

Page 520-525

Objectives

Identify protectionism

Analyze the arguments for protectionism

Discuss the applying of economic concepts

Questions

Considering all the disadvantages of trade barriers, why would a country enact such  laws?

0

What is the use of trade
barriers between nations to protect domestic industries?

1. Infant industries
2. Domestic trade
3. Trade Barriers
4. Protectionism

What new industries that are often unable to compete
against larger, more established competitors.?

1. Trade Barriers
2. Protectionism
3. infant industries
4. Domestic trade

Arguments for protectionism

1.Argument for domestic jobs

2.Argument for protecting infant industries

3.Protecting national security

What are the trade-offs in using protectionist policies to protect domestic jobs and infant industries?

Answer

higher prices for consumers, continued inefficiencies)

In the examples on page 524 of the Chinese
bid for an energy company and a bid by a Dubai company for port facility control, was the outcome one you would support? Why or why not?

Do you think that political pressure for protectionist trade barriers rises or falls during a recession? Explain your answer. ​

It would likely rise in an effort to protect already threatened jobs.

If you were the CEO of a manufacturing company facing stiff foreign competition, what are some ways you could adjust your business to stay competitive? What are the advantages and disadvantages of these changes?​

Applying economic concepts

 A trade agreement between Kenya and some nations in Europe requires Kenyan farmers, most of whom have small  peasant farms, to comply with 400 conditions before they can  export their produce to European countries.They must be able to  document the fertilizers, pesticides, and other additives used in  the growing of their crops. How would you categorize this trade  restriction? What impact do you think it will have on Kenyan  exports and prices in the European nations?​

Answer here for above question.

Answer

This is an informal trade barrier. It is likely to

significantly reduce trade between Kenya and

EU because of the difficulty of compliance, and

EU prices will likely remain high.​

What can you say about the lesson ?