世界经济教学资料 4. trade and investment policies讲义教材.pptVIP

Trade and Investment Policies Rationale and Goals of Trade and Investment Policies Government policies are designed to regulate, direct, and protect national activities. The exercise of these policies is the result of national sovereignty, which provides a government with the right to shape the environment of the country and its citizens. The domestic policy actions of most governments aim to increase the standard of living of citizens and to improve the quality of life, and to achieve full employment. These policies affect international trade and investment indirectly. Rationale and Goals of Trade and Investment Policies (cont.) In more direct ways, a country may also pursue technology transfer from abroad or the exclusion of foreign industries to the benefit of domestic infant firms. Government officials can also develop regulations on imports to protect citizens. Nations institute foreign policy measures designed with domestic concerns in mind but explicitly aimed to exercise influence abroad. A major foreign policy goal is national security. The Price of Protectionism Industry Total Costs to Number of Cost per Consumers Jobs Saved Job Saved (in $ millions) Textiles and apparel $27,000 640,000 $ 42,000 Carbon Steel 6,800 9,000 $ 750,000 Autos 5,800 55,000 $ 105,000 Dairy products 5,500 25,000 $ 220,000 Shipping 3,000 11,000 $ 270,000 Meat 1,800 11,000 $ 160,000 The Effects of Tariffs Increase Inflationary pressures. Special interests’ privileges. Government control and political considerations in economic matters. The number of tariffs they beget via reciprocity. Weaken Balance-of-payments positions. Supply-and-demand patterns. International understanding (they can start trade wars). Restrict Manufacturer’ supply sources. Choices available to consumers Competition. The International Trade Organization In 1948, the ITO represented an agreement among 53 countries t