希尔国际商务 英文Chapter-7

International

BusinessBy

Charles

W.L.

HillCopyright©2017McGraw-HillEducation

.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-H11eChapter

7Government

Policy

and

InternationalTradeCopyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-H➢Free

trade

occurs

when

governments

donotattempt

torestrict

whatcitizens

can

buyfromanother

countryorwhat

they

canselltoanother

country➢

many

nations

are

nominally

committed

to

freetrade,butintervenetoprotecttheinterestsof

politicallyimportantgroupsWhat

IsThe

PoliticalRealityOfInternationalTrade?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H➢Governments

use

various

methods

to

intervene

inmarkets

including1.Tariffs-taxesleviedon

imports

thateffectivelyraisethecostof

importedproductsrelativetodomesticproducts➢

Specifictariffs-leviedasafixedchargefor

each

unit

of

a

good

imported➢

Advaloremtariffs-leviedasaproportionof

the

value

of

the

imported

goodHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H➢

Tariffs➢increasegovernmentrevenues➢force

consumers

to

pay

more

for

certain

imports➢are

pro-producer

and

anti-consumer➢

reducetheoverallefficiencyoftheworld

economyHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H2.Subsidies-governmentpayments

todomesticproducers➢

Subsidies

help

domestic

producers➢

compete

against

low-cost

foreign

imports➢

gain

export

markets➢

Consumers

typicallyabsorbthecostsof

subsidiesHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H3.Import

Quotas

-restrictthequantityofsomegoodthatmaybe

imported

intoacountry➢

Tariff

rate

quotas

-a

hybrid

of

a

quota

and

atariff

wherea

lower

tariff

isappliedto

impor

withinthequotathantothoseover

thequota➢

Aquotarent

-theextraprofitthatproducers

makewhen

supply

is

artificiallylimited

byanimportquotaHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H4.VoluntaryExportRestraints-quotasontrade

imposedbytheexporting

country,

typicallyattherequestofthe

importing

country

’

s

government➢

Import

quotas

and

voluntary

exportrestraints➢

benefit

domestic

producers➢

raise

the

prices

of

imported

goodsHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H5.Local

Content

Requirements

-

demandthatsome

specificfraction

of

a

goodbe

produceddomestically➢

benefit

domestic

producers➢

consumers

face

higher

prices6.AdministrativePolicies-bureaucraticrulesdesigned

tomake

it

difficult

forimportsto

entera

country➢

polices

hurt

consumers

by

limitingchoiceHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMaw-H7.AntidumpingPolicies–alsocalledcountervailingduties–punishforeignfirmstha

engage

indumpingandprotectdomesticproducersfrom

“unfair

”foreigncompetition

➢

dumping-sellinggoods

ina

foreignmarketbelowtheircostsofproduction,orsellinggoods

inaforeignmarketbelowtheir

“fair

”

market

value

➢

enablesfirmstounloadexcessproduction

inforeignmarkets➢

may

be

predatory

behavior-producers

useprofitsfromtheirhomemarketsto

subsidizeprices

inaforeignmarkettodrivecompetitorsou

ofthatmarket,andthenlaterraisepricesHowDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢

Therearetwomainargumentsfor

governmentinterventioninthemarket1.Political

arguments-concernedwithprotecting

theinterestsofcertaingroupswithinanation

(normallyproducers),oftenattheexpenseofothergroups

(normallyconsumers)2.Economicarguments-concernedwithboostingtheoverallwealthofanation-benefitsboth

producersandconsumersWhyDoGovernmentsInterveneInMarkets?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H1.Protectingjobs-

themost

commonpolitical

reasonfor

traderestrictions➢

results

from

political

pressures

by

unions

orindustriesthatare"threatened"bymoreefficient

foreign

producers

and

have

more

politicalcloutthanconsumersWhatAreThe

PoliticalArgumentsForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H2.Protectingindustries

deemed

importantfornationalsecurity-industriesareofprotected

because

they

are

deemedimportantfornationalsecurity➢

aerospaceorsemiconductorsWhatAreThe

PoliticalArgumentsForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H3.Retaliationforunfairforeigncom

petitiowhengovernmentstake,

or

threaten

totake,specificactions,othercountries

mayremove

trade

barriers➢

ifthreatenedgovernmentsdonotbackdown,

tensionscanescalateandnew

tradebarriers

may

be

enacted➢

riskystrategy4.Protectingconsumersfrom“

dangerous

”

products-limit

“unsafe

”

productsWhatAreThe

PoliticalArgumentsForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H5.Furtheringthegoalsofforeignpolicy-

preferentialtradetermscan

be

granted

tocountriesthat

a

governmentwants

to

buildstrongrelationswith➢

trade

policy

can

also

be

used

to

punish

rogue

statesWhatAreThe

PoliticalArgumentsForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H6.Protectingthehumanrightsofindividualsinexportingcountries-throughtradepolicyactions6.Protectingtheenvironment-internationaltrade

isassociatedwithadeclineinenvironmentalquality➢

concern

over

global

warming➢

enforcementofenvironmentalregulationsWhatAreThe

PoliticalArgumentsForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-HAstheOpeningCase,“U.S.TariffsonChineseSolarPaBenefitMalaysia,”shows,governmentinterventiontoprotectindustriesfromunfaircompetitiondoesnotalresultinbusinessescreatingjobsintheirhomecountIfyouweretheheadofacompanyprotectedfromforeigncompetitionviatariffs,importquotas,orsubsidies,youfeelobligatedtomaintainproductionfacilitiesihomecountry,evenifdoingsowouldmeanhigherproduction

costs

and

lower

profitmargins?Whyor

whynCopyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentof-c7raw-H1.The

infant

industryargument-anindustryshouldbeprotecteduntilit

can

developandbeviableand

competitiveinternationally➢

acceptedas

a

justificationfor

temporary

traderestrictionsundertheWTOWhatAreTheEconomicArguments

ForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢

Question:When

isan

industry

“

grownup

”

?➢

Criticsarguethatifacountryhasthepotentia

todevelopaviablecompetitiveposition,itsfirms

should

be

capable

of

raising

necessary

fundswithoutadditionalsupportfromthegovernmentWhatAreTheEconomicArguments

ForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H2.Strategictradepolicy

–first-moveradvantagescanbe

important

to

success➢

governments

can

help

firms

from

their

countriesattaintheseadvantages➢

governmentscanhelpfirmsovercomebarrierstoentryintoindustries

whereforeig

firmshavean

initial

advantageWhatAreTheEconomicArguments

ForGovernment

Intervention?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢Paul

Krugman

argues

that

strategic

tradepoliciesaimedatestablishingdomesticfirmsina

dominantpositioninaglobalindustryarebeggar-thy-neighborpoliciesthatboostnationalincome

at

the

expense

of

other

countries➢

countriesthatattempttousesuchpolicieswillprobablyprovokeretaliation➢Krugmanarguesthatsincespecial

interestgroupscaninfluencegovernments,strategictradepolicyisalmostcertaintobecapturedbysuchgroupswhowilldistortit

to

their

own

endsWhenShouldGovernmentsAvoid

Using

Trade

Barriers?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢UntiltheGreatDepressionofthe1930s,mostcountrieshadsomedegreeofprotectionism➢Smoot-HawleyAct(1930)➢AfterWWII,theU.S.andothernationsrealizedthevalueoffreertrade➢establishedtheGeneralAgreementonTariffsandTrade(GATT)-amultilateralagreementtoliberalizetradeHowHas

TheCurrentWorldTradingSystemEmerged?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢In

the

1980s

and

early

1990s

protectionist

trends

emerged➢

Japan

’

sperceivedprotectionist

(neo-mercantilist)policiescreatedintensepolitic

pressuresinothercountries➢

persistenttradedeficitsbytheU.S➢

useofnon-tariffbarriersincreasedHowHas

TheCurrentWorldTradingSystemEmerged?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢

TheUruguay

Round

ofGATTnegotiationsbegan

in

1986focusingon1.Services

and

intellectualproperty➢going

beyond

manufactured

goods

to

addresstradeissuesrelatedtoservicesand

intellectu

a

property,andagriculture2.TheWorldTradeOrganization➢it

was

hoped

that

enforcement

mechanismswouldmake

theWTO

a

more

effectivepoliceman

oftheglobaltraderulesHowHas

TheCurrentWorldTradingSystemEmerged?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢TheWTO

encompassed

GATT

alongwith

twosistersorganizations➢

theGeneralAgreementonTrade

inServices

(GATS)➢

working

to

extend

free

trade

agreements

toservices➢

theAgreementonTradeRelatedAspectsofIntellectualPropertyRights

(TRIPS)➢

workingtodevelop

common

international

rulesforintellectualpropertyrightsHowHas

TheCurrentWorldTradingSystemEmerged?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢TheWTOhas

emerged

as

aneffectiveadvocateand

facilitatoroffuturetradedeals,particularsuchareasas

services➢

159members

in2013➢

sofar,

theWTO

’

s

policing

and

enforcementmechanismsarehavingapositiveeffect➢

mostcountrieshaveadoptedWTOrecommendationsfortradedisputes➢

a

magnet

for

various

groups

protesting

freetradeHowHas

TheCurrentWorldTradingSystemEmerged?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢The

current

agenda

of

the

WTO

focuseson➢

theriseofanti-dumpingpolicies➢

thehighlevelofprotectionisminagriculture

➢

thelackofstrongprotectionforintellectualpropertyrightsinmanynations➢

continued

high

tariffsonnonagriculturalgoodandservices

inmanynationsWhat

IsTheFutureOfTheWorldTradeOrganization?Copyright©2017McGraw-HillEducation.Allrightsreserved.Noreproductionordistributionwithoutthepriorwrittenconsentofaw-H➢TheWTOlaunchedanewroundoftalksat