Know Your Webex Etiquette Module 1 Chat Session

Know Your Webex Etiquette… Module 1 Chat Session Prof CG: Clare Ralph Greenlaw Jr. (appears as Sherry Kollmann) Faculty Lead, SNHU COCE, UG International Business Clare. Greenlaw@snhu. edu 207. 632. 7108 (c) Falmouth, Maine (EST zone) until 10 PM Please mute your laptop or cell phone unless speaking. This to prevent unwanted feedback and echoing until you wish to speak. Keep your speaker volume moderate on laptops. Unmute to comment ANY TIME! Use the Chat anytime. Prof Lisa Ward IB Team Lead Faculty: Please indicate your role by abbreviation of Prof, Inst, etc. To download copies of these presentations visit this web page: www. panaceasolutions. com/int 113_chat. html 12 -1

Tonight’s Resource Extra’s Videos The Case for Brexit Via Regulation and Trade (Bloomberg): http: //bloom. bg/28 OBxv. R WEB Thompson Reuters: Practical Law. (2016): www. Us. practicallaw. com. Employment Law Basics (multiple countries): https: //www. fisherphillips. com/Cross-Border-Employer/BASICS-OFEMPLOYMENT-LAW-IN-ITALY Search the Country Q&A in the Employment and Employee Benefits Global Guide by question and jurisdiction. ILO knowledge portal connects country information and data on labour laws, standards, policies and statistics. Country profiles below provide also relevant information on ILO projects and programmes, publications and good practices. (http: //www. ilo. org/global/regions/lang--en/index. htm) Employment advice for IB students: http: //myworldabroad. com/whatdoyouwanttodo American Citizens Abroad (association for US expats): www. aca. ch Ease of Doing Business Index (WB): http: //www. doingbusiness. org/rankings Index of Economic Freedom (Heritage Found): http: //www. heritage. org/index/heatmap Presentations Chats slides and resources: www. panaceasolutions. com/int 113_chat. html

Tonight’s Resource Extra’s New Trade Policy Concerns http: //www. cnbc. com/2016/12/06/how-a-trump-trade-war-would-impact-your-state. html http: //fortune. com/2016/12/22/donald-trump-china-trade-war/ http: //www. cfr. org/trade/trans-pacific-partnership-us-trade-policy/p 36422 Donald Trump and Xi Jinping’s battle over globalization https: //www. ft. com/content/74 b 42 cd 8 -e 171 -11 e 6 -8405 -9 e 5580 d 6 e 5 fb https: //www. washingtonpost. com/news/worldviews/wp/2017/01/25/trade-trumps-national-security-in-trumps-worldview-thats-reallybad-news-for-china/ Free Trade and Its Foes Winners and Losers https: //www. bloomberg. com/quicktake/free-trade Trump's TPP pullout could hurt workers more than it helps http: //www. cnbc. com/2017/01/26/trumps-tpp-pullout-could-hurt-workers-more-than-it-helps. html

Introduction: Protectionism Policies Physical and Social Factors Affecting the Flow of Goods and Services 6 -4

Seeing Global Dynamics and Complexity p Trade restriction changes bring about winners and losers among countries, companies, and workers p Gains to consumers from freer trade may come at the expense of companies and workers p The international regulatory situation is becoming more complex 6 -5

Conflicting Results of Trade Policies o Governments intervene in trade to achieve economic, social, and political goals o Policymakers are challenged by o conflicting objectives: Proposed policies on trade spark debate o Interest/stakeholder groups o o Workers o Owners o Suppliers o Local politicians Consumers usually don’t care 6 -9

Economic Rationales for Government Intervention p Why governments intervene in trade n n Economic rationales p Fighting unemployment p Protecting infant industries p Promoting industrialization p Improving comparative position Non-economic rationales p Maintaining essential industries p Promoting acceptable practices abroad p Maintaining or extending spheres of influence p Preserving national culture

Fighting Unemployment p The unemployed are the most effective pressure group p But, import restrictions n can lead to retaliation by other countries n are less likely retaliated against effectively by small economies n are less likely to be met with retaliation if implemented by small economies n may decrease export jobs because of price increases for components n may decrease export jobs because of lower incomes abroad 6 -11

Protecting ‘Infant Industries’ p The infant industry argument n p government protection of import competition is necessary to help certain industries evolve from high-cost to low-cost production Used by developing countries 6 -12

Developing an Industrial Base p Countries promote industrialization because it n brings faster growth than agriculture n brings in investment funds (Including FDI) n diversifies the economy n creates growth in manufactured goods n reduces imports and promotes exports n helps the nation-building process 6 -13

Economic Relationships With Other Countries § Trade controls can be used § to improve the balance of payments § to gain fair access to foreign markets § § as a bargaining tool § § comparable access argument believability and importance to control prices § Dumping § optimum-tariff theory 6 -14

Noneconomic Rationales for Government Intervention p Noneconomic n Maintaining n Promoting essential industries acceptable practices abroad n Maintaining n Preserving rationales include or extending spheres of influence national culture 6 -15

Maintaining Essential Industries Protect essential industries so the country is not dependent on foreign supplies during war p Countries must n determine which industries are essential n consider costs and alternatives n consider political consequences 6 -16

Promoting Acceptable Practices Abroad Import trade controls can be used to promote changes in foreign countries’ political policies or capabilities as a foreign policy weapon to pressure governments to alter their stances on a variety of issues human rights environmental protection 6 -17

Maintaining or Extending Spheres of Influence Governments provide assistance and encourage imports from countries that join a political alliance or vote a preferred way within international bodies A country’s trade restrictions may coerce governments to follow certain political actions or punish companies whose governments do not 6 -18

Preserving National Culture In order to preserve national culture, countries limit foreign products and services in certain sectors Canada’s cultural sovereignty prohibit exports of art and historical items deemed important to national heritage 6 -19

Instruments of Trade Control “Mechanisms” & “Tools” p Two types of trade controls n those that indirectly affect the amount traded by directly influencing prices of exports or imports n those that directly limit the amount of a good that can be traded by setting actual quotas or quantity limits 6 -20

Tariffs p Tariffs n are also known as duties refer to a government levied tax on goods shipped internationally p Tariffs may be levied on goods entering, leaving, or passing through a country n for protection or revenue (only effective early on) n on a per unit basis or a value basis n p export tariffs p transit tariffs p import tariffs 6 -21

Nontariff Barriers: Direct Price Influencers p Subsidies n direct assistance to companies to make them more competitive p agricultural subsidies p overcoming market imperfections p valuation problems 6 -22

Nontariff Barriers: Direct Price Influencers p Aid and loans n tied n untied p Customs valuation p Other direct-price influences n special fees and requirements 6 -23

Nontariff Barriers: Quantity Controls p Quotas n limit the quantity of a product that can be imported or exported in a given time frame p. Voluntary export restraint (VER) p. Embargoes 6 -24

Nontariff Barriers: Quantity Controls “Buy local” legislation Standards and labels Specific permission requirements import or export license Administrative delays Reciprocal requirements Countertrade or offsets Restrictions on services 6 -25

Balanced Trade Won’t Offset Job Losses Permanently Without a trade deficit, there would have been more U. S. manufacturing jobs in both 1998 (2. 6 million more) and 2010 (2. 9 million more). But that would not have materially altered the decline in manufacturing employment over that period. Edwards, R. L. Z. (2012) Shattering the myths about U. S. Trade policy. Available at: https: //hbr. org/2012/03/shattering-the-myths-about-us-trade-policy (Accessed: 26 January 2017).