世界经济教学资料4.tradeandinvestmentpol

TradeandInvestmentPolicies,LearningObjectives,ToseehowtradeandinvestmentpolicieshavehistoricallybeenasubsetofdomesticpoliciesToexaminehowhistoricalattitudestowardtradeandinvestmentpoliciesarechangingToseehowgloballinksintradeandinvestmenthavemadepolicymakerslessabletofocussolelyondomesticissuesTounderstandthatnationsmustcooperatecloselyinthefuturetomaintainaviableglobaltradeandinvestmentenvironment,RationaleandGoalsofTradeandInvestmentPolicies,NationalSovereigntyStandardofLivingQualityofLifeForeignPolicy,RationaleandGoalsofTradeandInvestmentPolicies,Governmentpoliciesaredesignedtoregulate,direct,andprotectnationalactivities.Theexerciseofthesepoliciesistheresultofnationalsovereignty,whichprovidesagovernmentwiththerighttoshapetheenvironmentofthecountryanditscitizens.Thedomesticpolicyactionsofmostgovernmentsaimtoincreasethestandardoflivingofcitizensandtoimprovethequalityoflife,andtoachievefullemployment.Thesepoliciesaffectinternationaltradeandinvestmentindirectly.,RationaleandGoalsofTradeandInvestmentPolicies(cont.),Inmoredirectways,acountrymayalsopursuetechnologytransferfromabroadortheexclusionofforeignindustriestothebenefitofdomesticinfantfirms.Governmentofficialscanalsodevelopregulationsonimportstoprotectcitizens.Nationsinstituteforeignpolicymeasuresdesignedwithdomesticconcernsinmindbutexplicitlyaimedtoexerciseinfluenceabroad.Amajorforeignpolicygoalisnationalsecurity.,ThePriceofProtectionism,IndustryTotalCoststoNumberofCostperConsumersJobsSavedJobSaved(in$millions),Textilesandapparel$27,000640,000$42,000CarbonSteel6,8009,000$750,000Autos5,80055,000$105,000Dairyproducts5,50025,000$220,000Shipping3,00011,000$270,000Meat1,80011,000$160,000,TheEffectsofTariffs,IncreaseInflationarypressures.Specialinterestsprivileges.Governmentcontrolandpoliticalconsiderationsineconomicmatters.Thenumberoftariffstheybegetviareciprocity.WeakenBalance-of-paymentspositions.Supply-and-demandpatterns.Internationalunderstanding(theycanstarttradewars).RestrictManufacturersupplysources.ChoicesavailabletoconsumersCompetition.,TheInternationalTradeOrganization,In1948,theITOrepresentedanagreementamong53countriesto:Aidininternationalcommercialpolicies,restrictivebusinesspractices,commodityagreements,employmentandreconstruction,andeconomicdevelopmentandinternationalinvestment.ItdevelopedaconstitutionforanewUnitedNationsagency.TheITOwasneverimplemented.,TheGeneralAgreementonTariffsandTrade,GATTstartedin1947asasetofrulestoensurenondiscrimination,transparentprocedures,thesettlementofdisputes,andtheparticipationofthelesser-developedcountriesininternationaltrade.GATTusedtariffconcessionstolimittheleveloftariffsthatwouldbeimposedonotherGATTmembers.TheMostFavoredNationclausecallsforeachmembercountrytogranteveryothermembercountrythesametreatmentthatitaccordswithanyothercountrywithrespecttoimportsandexports.,TheWorldTradeOrganization,TheWTOwasintroducedin1995andadministersinternationaltradeandinvestmentaccords.In2002,theDohaRoundendedthefirststageofimplementation.Theaimistofurtherhastenimplementationofliberalizationtohelptheimpoverishedanddevelopingnations.,WhatWTOMeanstoDifferentIndustries,BankswillbeallowedtocompetefreelyinSouthKoreaandotherplaceswheretheyarerestricted.InsurancecompanieswillbeabletosellpoliciesinIndia,oneoftheWorldsmosttightlyclosedmarkets.MovieswillhavebetterprotectionfromThaifilmcounterfeiters.PharmaceuticalswillhavebetterprotectionfromArgentineimitators.ComputersoftwaremakerswillhavebetterprotectionfromBrazilianswhoripoffcopyrightedprograms.,Gainers,Glasswaretariffsashighas30percentoninexpensivedrinkingglasseswillbereduced,threateningsome40,000jobs.Textileswillgraduallylosequotasandtariffsthatprotect1.1millionU.S.workers-andadd50percenttowholesalepricesofclothing.Peanutswilllosequotasthatlimitimportstoahandfulandthatprotect19,000Americanfarmers.Dairyimportsofforeigncheese,nowlimitedto19,000tonsayear,willgoup,hurting240,000U.S.farmers.Sugarimportceilings,now25percentoftheninemilliontonstheUnitedStatesuseseachyear,willgo,threatening11,000sugarbeetandcanegrowers.,WhatWTOMeanstoDifferentIndustries,Losers,ManyJapaneseProducts,likeToyotas,areproducedorassembledintheU.S.,WhoBuildstheBoeing777?,ChangesintheGlobalPolicyEnvironment,Threemajorchangeshaveoccurredovertimeintheglobalpolicyenvironment:areductionofdomesticpolicyinfluence;aweakeningoftraditionalinternationalinstitutions;andasharpeningoftheconflictbetweenindustrializedanddevelopingnations.,ReductionofDomesticPolicyInfluences,Currencyflowshaveincreasedfromanaveragedailytradevolumeof$18billionin1980to$1.2trillionin2001.Asaresult,currencyflowshavebeguntosetthevalueofexchangeratesindependentoftrade,whichinturnhavenowbeguntodeterminetheleveloftrade.Theinteractionsbetweenglobalanddomesticfinancialflowshaveseverelylimitedtheinfluenceofgovernments.Toregaininfluence,somegovernmentshavetriedtorestrictworldtradebyerectingbarriers,chargingtariffs,andimplementingimportregulations.,WeakeningofInternationalInstitutions,TheintenselinksamongnationsandtheneweconomicenvironmentresultingfromnewmarketentrantsandtheencounterofdifferenteconomicsystemsareweakeningtheWTO.TheInternationalMonetaryFunddoesnothavethefundsavailabletosatisfytheneedsofallstrugglingnations.TheWorldBankhasbeenunsuccessfulinfurtheringtheeconomicgoalsofthedevelopingworldandnewlyemergingmarketeconomies.Someclaimthatitsbankpolicieshavecreatedmorepoverty.,ConflictBetweenIndustrializedandDevelopingNations,Inthepast,itwashopedthatthegapbetweenindustrializedanddevelopingnationswouldgraduallybeclosed.Althoughseveralless-developednationshaveemergedasnewlyindustrializedcountries,evenmorenationsarefacinggrimeconomicfutures.Anincreaseinenvironmentalawarenesshasledtoafurthersharpeningoftheconflict.,PolicyResponsestoChangingConditions,RestrictionsofImportsTariffsQuotasNontariffBarriersVoluntaryRestraintAgreementsAnti-DumpingLawsTheEffectsofImportRestrictionsRestrictionsofExportsNationalSecurityControls,PolicyResponsestoChangingConditions,ThePositiveImpactTechnologyTransferTheNegativeImpactBrainDrainTheHome-CountryPerspectiveRestrictionsonInvestmentCapitalFlight,PolicyResponsestoChangingConditions,ExportPromotionU.S.ExportPromotionMixedAidCreditsImportPromotionEffortsInvestmentPoliciesCommitteeforForeignInvestmentsintheUnitedStates(CFIUS)TheHost-CountryPerspective,PolicyResponsestoChangingConditions,InvestmentPromotionFiscalIncentivesFinancialIncentivesNonfinancialIncentivesManagementofthePolicyRelationship,RestrictionsofImports,ManycountriesincludingtheUnitedStateshavepassedantidumpinglawswhichhelpdomesticindustriesbyrestrictingforeignproductsbeingsoldbelowthecostofproduction,oratpriceslowerthanthoseinthehomemarket.Importsarealsorestrictedbynontariffbarriers,suchasbuy-domesticcampaigns.Itisdifficulttoremovethesebarriers.Importscanalsobereducedbytighteningmarketaccessandentryofforeignproductsthroughinvolvedproceduresandinspections.,EffectsofImportRestriction,Importcontrolmaymeanthatthemostefficientsourcesofsupplyarenotavailable,resultinginsecond-bestproductsorhighercostsforrestrictedsupplies.Importcontrolmayresultinthedownstreamchangeinthecompositionofimports.Duetoinefficiency,importcontrolsmaycausealagintechnologicaladvancements.,RestrictionsofExports,Nationscontroltheirexportsforreasonsofshortsupply,nationalsecurityandforeignpolicypurposes,orthedesiretoretaincapital.Nationalsecuritycontrolsareplacedonweaponsandhigh-technologyexports.Althoughrestrictionofexportsisavaluableinternationalrelationstool,itmaygiveacountrysfirmsthereputationofbeingunreliablesuppliersandmaydivertorderstofirmsofothernations.,ExportPromotion,Exportpromotionisdesignedtohelpfirmsenterandmaintaintheirpositionininternationalmarketsandtomatchorcounteractsimilareffortsbyothernations.Variousapproachestowardexportpromotioninclude:knowledgetransferdirectorindirectsubsidizationofexportactivitiesreducinggovernmentalredtapeforexportersexportfinancingandmixedaidcreditstoexportersalteredtaxlegislationfornationalslivingabroad,ImportPromotion,Countriesthatmaintainlargebalance-of-tradesurplusesuseimportpromotionmeasures.TheJapanExternalTradeOrganization(JETRO)hasbeguntofocusonthepromotionofimportstoJapan.,RestrictionsonInvestment,Manynationsthatlacknecessaryforeignexchangereservesrestrictexportsofcapital,becausecapitalflightcanbeamajorproblem.Oncegovernmentsimposerestrictionsontheexportoffunds,thedesiretotransfercapitalabroadincreases.Thiscreatesproblemsforgainingnewoutsideinvestors.,InvestmentPromotion,FiscalIncentives,FinancialIncentives,NonfinancialIncentives,InvestmentPromotion(cont.),Fiscalincentivesarespecifictaxmeasuresdesignedtoattracttheforeigninvestor,includingspecialdepreciationallowances,taxcreditsorrebates,specialdeductionsforcapitalexpenditures,taxholidays,andreductionoftaxburdens.Financialincentivesofferspecialfundingfortheinvestorbyprovidinglandorbuilding,loans,andloanguarantees.Nonfinancialincentivescanconsistofguaranteedgovernmentpurchases,specialprotectionfromcompetition,andinvestmentsininfrastructurefacilities.,U.S.PerspectiveonTradeandInvestmentPolicies,TheU.S.seeksapositivetradepolicyratherthanreactive,adhocresponsestospecificsituations.Protectionistlegislationcanbehelpful,provideditisnotenactedintolaw.TradepromotionauthoritygivesCongresstherighttoacceptorrejecttreatiesandagreements,butreducestheamendmentprocedures,InternationalPerspectiveonTradeandInvestmentPolicies,Fromaninternationalperspective,tradeandinvestmentnegotiationsmustcontinue.Indoingso,tradeandinvestmentpolicycantakeeitheramultilateralorbilateralapproach:bilateralnegotiationsarecarriedoutmainlybetweentwonations.multilateralnegotiationsarecarriedoutamonganumberofnations.,SpecificLim