Economics Question -

Description

Critical Thinking Assignment

Don't use plagiarized sources. Get Your Custom Assignment on

Economics Question

From as Little as $13/Page

Exchange Rate Determination

Saudi Arabian Riyal and the U.S. Dollar

Q- While Saudi Arabia seeks to diversify its economy, the Saudi economy is dominated by the petroleum sector. In addition, the Saudi Arabian Riyal (SAR) is pegged to the U.S. Dollar. For this week’s discussion, please answer the following questions:

What are the advantages and disadvantages of the pegged exchange rate?
Analyze the effect on the economy of Saudi Arabia (GDP, interest rates, inflation, and trade balance) given two scenarios when there is a dramatically declining world oil price or a dramatically increasing world oil price.

Directions:

Your essay is required to be five pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.
Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles. Use the Saudi Digital Library to find your resources.
Use academic writing standards and follow APA style guidelines.
Review the grading rubric to see how you will be graded for this assignment.

Learning Outcomes

Describe the structure and workings of the global foreign exchange market.
Analyze how exchange rates are determined by the currency supply and demand.
Analyze the determinants of exchange rates in the short, medium, and long term.

Readings

Required:

Chapter 12 in International Economics

Ofer, A., & Varon, E. (2019). Turkish currency crisis- spillover effects on European banks. Borsa Istanbul Review, 19(4), 372-378.

Recommended:

Chapter 12 PowerPoint slides Chapter 12 PowerPoint slides – Alternative Formats

Hiro, I., & McCauley, R. (2019). A key currency view of global imbalances. Journal of International Money and Finance, 94, 97-115. https://doi-org.sdl.idm.oclc.org/10.1016/j.jimonfin.2019.01.013

Muhammad, A., & Iftikhar, A. (2019). Empirical investigation of foreign direct investment and current account balance in East Asian economies. Journal of Commerce & Social Sciences, 13(3), 779-795.

Unformatted Attachment Preview

150
120
90
A RCTIC
OCEAN
60
30
30
0
A RCTIC
OCEAN
Greenland
(DENMARK)
NORWAY
ICELAND
U.S.
SWEDEN FIN
60
CANADA
BELGIUM
UNITED
KINGDOM DENMARK
NETH.
IRELAND
SLOVAKIA
HUNGARY
NORTH
PACIFIC
OCEAN
NORTH
ATLANTIC
OCEAN
UNITED STATES
EST
LITH.
POLAND
GERMANY CZECH RE
SWITZ. AUSTRIA
FRANCE
RO
ITALY
B
PORTUGAL SPAIN
GREEC
TUNISIA
MOROCCO
30
ALGERIA
MEXICO
CUBA
MAURITANIA
BELIZE
GUATEMALA
HONDURAS
EL SALVADOR
NICARAGUA
COSTA RICA
PANAMA
MALI
NIGER
CHAD
BURKINA
FASO
GUINEA-BISSAU
NIGERIA
GUINEA
BENIN
CÔTE
CENTR
SIERRA LEONE D’IVOIRE TOGO
AFRICAN RE
LIBERIA
GHANA
CAMEROON
‘
EQUATORIAL
GUINEA
GABON
DEMOC
SENEGAL
VENEZUELA
COLOMBIA GUYANA
0
LIBYA
WESTERN
SAHARA
SURINAME
French Guiana
(FRANCE)
ECUADOR
‘
REP. OF THE CONGO
PERU
BRAZIL
SOUTH
ATLANTIC
OCEAN
BOLIVIA
REPU
OF THE
ANGOLA
Z
NAMIBIA
BOTS
PARAGUAY
CHILE
SOUT
AFRIC
30
URUGUAY
SOUTH
PACIFIC
OCEAN
ARGENTINA
60
ANTARCTICA
150
120
90
60
30
0
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_end02_hr_000-000.indd 2
8/3/18 9:56 AM
30
0
30
60
90
120
150
A RCTIC
OCEAN
A RCTIC
OCEAN
180
NORWAY
SWEDEN FINLAND
TED
DOM DENMARK
NETH.
RUSSIA
60
EST.
LAT.
LITH.
POLAND BELARUS
GERMANY CZECH REP. UKRAINE
SWITZ. AUSTRIA
ROMANIA
RANCE
ITALY
PAIN
TUNISIA
MALI
LIBYA
MONGOLIA
UZBEKISTAN
KYRGYZSTAN
TURKEY
TURKMENISTAN
TAJIKISTAN
ARMENIA
SYRIA
AFGHANISTAN
LEB.
IRAQ
IRAN
ISRAELJORDAN
KUWAIT
NEPAL
PAKISTAN
GREECE
ALGERIA
KAZAKHSTAN
AZERBAIJAN
BULGARIA GEORGIA
EGYPT
SAUDI
ARABIA
UNITED ARAB
EMIRATES
OMAN
NORTH KOREA
CHINA
ANGOLA
30
BANGLADESH
INDIA
BURMA LAOS
MOZAMBIQUE
ZIMBABWE
NAMIBIA
BOTSWANA
THAILAND
VIETNAM
CAMBODIA
SRI
LANKA
MALDIVES
PHILIPPINES
FEDERATED STATES
OF MICRONESIA
MARSHALL
ISLANDS
BRUNEI
MALAYSIA
SINGAPORE
0
INDONESIA
PAPUA
NEW GUINEA
SOLOMON
ISLANDS
INDIAN
OCEAN
MALAWI
ZAMBIA
NORTH
PACIFIC
OCEAN
JAPAN
BHUTAN
NIGER
CHAD
ERITREA YEMEN QATAR
URKINA
SUDAN
FASO
NIGERIA
DJIBOUTI
BENIN
E
CENTRAL
ETHIOPIA
RE TOGO
AFRICAN REPUBLIC
SOMALIA
GHANA
CAMEROON
‘
UGANDA
AL
KENYA
GABON
RWANDA
DEMOCRATIC
EP. OF THE CONGO
BURUNDI
REPUBLIC
OF THE CONGO TANZANIA
SOUTH
KOREA
FIJI
MADAGASCAR
AUSTRALIA
SWAZILAND
SOUTH
AFRICA
30
LESOTHO
NEW
ZEALAND
SOUTH
PACIFIC
OCEAN
60
ANTARCTICA
0
30
60
90
120
150
180
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_end03_hr_000-000.indd 1
8/3/18 9:57 AM
International Economics
SEVENTEENTH EDITION
R O B E R T J. CA R BAU G H
Professor of Economics, Central Washington University
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 1
8/9/18 6:16 PM
This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed.
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher
reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on
pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by
ISBN#, author, title, or keyword for materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
International Economics,
Seventeenth edition
Robert J. Carbaugh
Senior Vice President, Higher Ed
Product, Content, and Market
Development: Erin Joyner
© 2019, 2017 Cengage Learning, Inc.
Unless otherwise noted, all content is © Cengage
ALL RIGHTS RESERVED. No part of this work covered by the
copyright herein may be reproduced or distributed in any form or
by any means, except as permitted by U.S. copyright law, without
ermission of the copyright owner.
the prior written p
Product Director: Jason Fremder
Product Manager: Michael
Parthenakis
Project Manager: Julie Dierig
Content Developer: Kimberly
Beauchamp – MPS
Production Service: SPi-Global
Sr. Art Director: Bethany
Bourgeois
Intellectual Property
Analyst: Jennifer Bowes
Project Manager: Carly Belcher
Manufacturing Planner: Kevin
Kluck
Cover Image: Yevgenij_D/
ShutterStock.com
dibrova/ShutterStock.com
For product information and technology assistance, contact us at
Cengage Customer & Sales Support, 1-800-354-9706
For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions
Further permissions questions can be emailed to
[email protected]
Library of Congress Control Number: 2018939997
ISBN: 978-1-337-55893-8
Cengage
20 Channel Center Street
Boston, MA 02210
USA
Cengage is a leading provider of customized learning solutions
with employees residing in nearly 40 different countries and sales
in more than 125 countries around the world. Find your local
representative at www.cengage.com.
Cengage products are represented in Canada by
Nelson Education, Ltd.
To learn more about Cengage platforms and services, register or
access your online learning solution, or purchase materials for
your course, visit www.cengage.com
Printed in the United States of America
Print Number: 01 Print Year: 2018
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 2
8/9/18 6:16 PM
Brief Contents
preface �� xii
about the author �� xxi
chapter 1
The International Economy and Globalization �� 1
PART 1
International Trade Relations 25
chapter 2 Foundations of Modern Trade Theory: Comparative
Advantage�� 27
chapter 3
Sources of Comparative Advantage �� 71
chapter 4
Tariffs �� 113
chapter 5
Nontariff Trade Barriers �� 157
chapter 6
Trade Regulations and Industrial Policies �� 189
chapter 7
Trade Policies for the Developing Nations �� 239
chapter 8
Regional Trading Arrangements �� 277
chapter 9 International Factor Movements and Multinational
Enterprises �� 311
PART 2
International Monetary Relations 343
chapter 10
The Balance-of-Payments �� 345
chapter 11
Foreign Exchange �� 375
chapter 12
Exchange Rate Determination �� 413
chapter 13 Exchange Rate Adjustments and the
Balance-of-Payments �� 439
chapter 14
Exchange Rate Systems and Currency Crises �� 459
chapter 15
Macroeconomic Policy in an Open Economy �� 495
glossary �� 511
index �� 529
iii
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 3
8/9/18 6:16 PM
Contents
Preface ��xii
About the Author �� xxi
CHAPTER 1
The International Economy and Globalization ��1
Economic Interdependence: Federal Reserve Policy
Incites Global Backlash ��2
Globalization of Economic Activity ��3
Globalization Forces Kodak to Reinvent Itself �� 15
Bicycle Imports Force Schwinn to Downshift �� 16
Element Electronics Survives by Moving TV
Production to America�� 17
U.S. Apple Growers Not Overly
Worried about Chinese Imports��4
Common Fallacies of International Trade ��17
Waves of Globalization ��5
First Wave of Globalization: 1870–1914�� 5
Second Wave of Globalization: 1945–1980�� 6
Latest Wave of Globalization �� 7
Is International Trade an Opportunity or a
Threat to Workers?��19
Is the United States Losing Its
Innovation Edge?��18
Diesel Engines and Gas Turbines as
Movers of Globalization ��9
Has Globalization Gone Too Far? ��21
The United States as an Open Economy��9
Trade Patterns�� 9
Labor and Capital �� 12
Summary��24
Why Is Globalization Important?��13
The Plan of This Text ��23
Key Concepts and Terms ��24
Study Questions ��24
Globalization and Competition��15
PART 1 International Trade Relations
25
CHAPTER 2
Foundations of Modern Trade Theory: Comparative Advantage��27
Historical Development of Modern Trade Theory ��27
The Mercantilists �� 27
Why Nations Trade: Absolute Advantage �� 28
Adam Smith and David Ricardo��30
Why Nations Trade: Comparative Advantage �� 31
Production Possibilities Frontiers��33
Trading under Constant-Cost Conditions��35
Basis for Trade and Direction of Trade�� 35
Production Gains from Specialization �� 35
Babe Ruth and the Principle of
Comparative Advantage��37
Consumption Gains from Trade �� 38
Distributing the Gains from Trade �� 39
Equilibrium Terms of Trade �� 40
Terms of Trade Estimates�� 41
Dynamic Gains from Trade: Economic Growth��42
Changing Comparative Advantage��43
Natural Gas Boom Fuels Debate ��45
Trading under Increasing-Cost Conditions ��46
Increasing-Cost Trading Case �� 47
Partial Specialization �� 49
The Impact of Trade on Jobs ��49
Wooster, Ohio Bears the Brunt of Globalization ��50
Comparative Advantage Extended to Many
Products and Countries ��51
More Than Two Products �� 52
More Than Two Countries �� 52
Factor Mobility, Exit Barriers, and Trade ��53
Empirical Evidence on Comparative Advantage ��55
iv
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 4
8/9/18 6:16 PM
Contents
v
Can American Workers Compete with Low-Wage
Workers Abroad?�� 56
Outsourcing Backfires for Boeing 787 Dreamliner �� 63
Reshoring Production to the United States�� 64
The Case for Free Trade��58
Deindustrialization Redeploys
Workers to Growing Service Sector��64
Comparative Advantage and Global Supply Chains��58
Advantages and Disadvantages of Outsourcing �� 60
Outsourcing and the U.S. Automobile Industry�� 61
The iPhone Economy and Global Supply Chains �� 61
Summary��66
Key Concepts and Terms ��66
Study Questions ��67
CHAPTER 3
Sources of Comparative Advantage ��71
Factor Endowments as a Source of Comparative
Advantage��71
The Factor-Endowment Theory �� 72
Visualizing the Factor-Endowment Theory �� 74
Applying the Factor-Endowment Theory to U.S.–China
Trade �� 75
Chinese Manufacturers Beset by Rising Wages
and a Rising Yuan�� 76
Does Trade with China Take Away
Blue-Collar American Jobs?�� 77
Factor-Price Equalization �� 78
Globalization Drives Changes
for U.S. Automakers��79
Who Gains and Loses from Trade?
The Stolper–Samuelson Theorem �� 82
Is International Trade a Substitute for Migration?�� 83
Specific-Factors Theory: Trade and the Distribution
of Income �� 84
Does Trade Make the Poor Even Poorer? �� 86
Is International Trade Responsible for the Loss
of American Manufacturing Jobs? How about
Robots Instead?��88
Is the Factor-Endowment Theory a Good Predictor
of Trade Patterns? The Leontief Paradox ��89
Economies of Scale and Comparative Advantage ��90
Internal Economies of Scale �� 90
External Economies of Scale�� 91
Does a “Flat World” Make Ricardo
Wrong?��93
Overlapping Demands as a Basis for Trade ��93
Intra-industry Trade ��94
Technology as a Source of Comparative Advantage:
The Product Cycle Theory ��97
Radios, Pocket Calculators, and the International
Product Cycle�� 98
Japan Fades in the Electronics Industry�� 99
Dynamic Comparative Advantage: Industrial Policy�� 100
World Trade Organization Rules That Illegal
Government Subsidies Support Boeing and Airbus �� 102
Government Regulatory Policies and Comparative
Advantage�� 103
Do Labor Unions Stifle
Competitiveness? ��103
Transportation Costs and Comparative Advantage�� 105
Trade Effects�� 105
Falling Transportation Costs Foster Trade �� 107
How Containers Revolutionized the
World of Shipping�� 108
The Port of Prince Rupert: Shifting Competitiveness
in Shipping Routes�� 109
Summary�� 110
Key Concepts and Terms �� 111
Study Questions �� 111
CHAPTER 4
Tariffs��113
The Tariff Concept�� 114
Types of Tariffs �� 115
Specific Tariff�� 115
Ad Valorem Tariff�� 116
Compound Tariff �� 116
Trade Protectionism Intensifies
as Global Economy Falls into the
Great Recession��117
Effective Rate of Protection�� 118
Tariff Escalation �� 120
Outsourcing and Offshore Assembly Provision�� 121
Dodging Import Tariffs: Tariff Avoidance and Tariff
Evasion �� 122
Ford Strips Its Wagons to Avoid a High Tariff�� 122
Smuggled Steel Evades U.S. Tariffs �� 123
Postponing Import Tariffs�� 123
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 5
8/9/18 6:16 PM
vi
Contents
Gains from Eliminating Import
Tariffs��124
Bonded Warehouse�� 124
Foreign-Trade Zone�� 125
FTZs Benefit Motor Vehicle Importers�� 126
Tariff Effects: An Overview�� 126
Tariff Welfare Effects: Consumer Surplus and
Producer Surplus……………………………………………………….. 127
Tariff Welfare Effects: Small-Nation Model…………………….. 129
Tariff Welfare Effects: Large-Nation Model…………………….. 131
Donald Trump’s Border Tax: How to Pay
for the Wall…………………………………………………………. 134
The Optimal Tariff and Retaliation……………………………. 135
Examples of U.S. Tariffs………………………………………………….. 135
Obama’s Tariffs on Chinese Tires………………………………. 135
Should Footwear Tariffs Be Given the Boot?……………….. 137
Could a Higher Tariff Put a Dent
in the Federal Debt?…………………………..138
How a Tariff Burdens Exporters……………………………………… 138
Tariffs and the Poor: Regressive Tariffs…………………………… 140
Arguments for Trade Restrictions…………………………………… 142
Job Protection…………………………………………………………… 143
Protection against Cheap Foreign Labor…………………….. 143
Fairness in Trade: A Level Playing Field…………………….. 145
Maintenance of the Domestic Standard of Living………… 146
Equalization of Production Costs……………………………….. 146
Infant-Industry Argument…………………………………………. 147
Noneconomic Arguments………………………………………….. 147
Would a Tariff Wall Really Protect U.S. Jobs?…………………. 148
Petition of the Candle Makers…………….149
The Political Economy of Protectionism…………………………. 150
A Supply and Demand View of Protectionism…………….. 151
Summary………………………………………………………………………… 152
Key Concepts and Terms………………………………………………… 153
Study Questions………………………………………………………………. 154
CHAPTER 5
Nontariff Trade Barriers��157
Absolute Import Quota ………………………………………………….. 157
Trade and Welfare Effects…………………………………………. 158
Allocating Quota Licenses…………………………………………. 160
Quotas versus Tariffs………………………………………………… 161
Whirlpool Agitates for Antidumping Tariffs on Clothes
Washers………………………………………………………………. 175
Vaughan-Bassett Furniture Company: Furniture
Dumping from China…………………………………………… 177
Tariff-Rate Quota: A Two-Tier Tariff……………………………… 162
Tariff-Rate Quota Bittersweet for Sugar Consumers……. 164
Is Antidumping Law Unfair?…………………………………………… 178
Should Average Variable Cost Be the Yardstick
for Defining Dumping?…………………………………………. 178
Should Antidumping Law Reflect Currency
Fluctuations?……………………………………………………….. 179
Are Antidumping Duties Overused?…………………………… 179
Export Quotas…………………………………………………………………. 164
Japanese Auto Restraints Put Brakes on
U.S. Motorists……………………………………………………… 165
Domestic Content Requirements……………………………………. 166
How American Is Your Car?……………….168
Other Nontariff Trade Barriers……………………………………….. 180
Government Procurement Policies: “Buy American”…… 180
Subsidies…………………………………………………………………………. 168
Domestic Production Subsidy…………………………………….. 169
Export Subsidy………………………………………………………….. 170
U.S. Fiscal Stimulus and Buy
American Legislation…………………………182
Dumping………………………………………………………………………… 171
Forms of Dumping……………………………………………………. 171
International Price Discrimination……………………………. 172
Social Regulations…………………………………………………….. 182
CAFE Standards……………………………………………………….. 182
Europe Has a Cow over Hormone-Treated U.S. Beef…… 183
Sea Transport and Freight Regulations………………………. 184
Avoiding Antidumping Duties:
U.S.–Mexico Sugar Agreement…………..174
Key Concepts and Terms………………………………………………… 185
Antidumping Regulations……………………………………………….. 174
Study Questions………………………………………………………………. 186
Summary………………………………………………………………………… 185
CHAPTER 6
Trade Regulations and Industrial Policies��189
U.S. Tariff Policies Before 1930……………………………………….. 189
Reciprocal Trade Agreements Act…………………………………… 192
Smoot–Hawley Act…………………………………………………………. 191
General Agreement on Tariffs and Trade………………………… 193
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
58938_fm_hr_i-xxiv.indd 6
8/9/18 6:16 PM
Contents
Trade without Discrimination…………………………………… 193
Promoting Freer Trade……………………………………………… 194
Predictability: Through Binding and Transparency…….. 194
Multilateral Trade Negotiations………………………………… 195
Avoiding Trade Barriers during the
Great Recession…………………………………197
World Trade Organization……………………………………………… 198
Settling Trade Disputes……………………………………………… 198
Does the WTO Reduce National Sovereignty?…………….. 201
Does the WTO Harm the Environment?…………………….. 201
Harming the Environment………………………………………… 202
Improving the Environment………………………………………. 203
WTO Rules against China’s Hoarding of Rare
Earth Metals……………………………………………………….. 203
Future of the World Trade Organization……………………. 205
Trade Promotion Authority (Fast Track Authority)……….. 206
Safeguards (The Escape Clause): Emergency Protection
from Imports……………………………………………………………… 206
U.S. Safeguards Limit Surging Imports of Textiles
from China………………………………………………………….. 208
Countervailing Duties: Protection against Foreign
Export Subsidies………………………………………………………… 209
Countervailing Duties: Trade Disputes between
Canada and the United States………………………………. 209
Would a Carbon Tariff Help Solve
the Climate Problem?………………………..211
Antidumping Duties: Protection against Foreign
Dumping……………………………………………………………………. 212
Remedies against Dumped and Subsidized Imports…….. 213
vii
U.S. Steel Companies Lose an Unfair Trade Case
and Still Win……………………………………………………….. 215
Section 301: Protection against Unfair Trading
Practices…………………………………………………………………….. 216
Protection of Intellectual Property Rights……………………….. 217
China’s Piracy of Software…………………………………………. 218
Trade Adjustment Assistance………………………………………….. 219
Trade Adjustment Assistance for Workers, Firms,
Farmers, and Fishermen………………………………………. 220
Is Trade Adjustment Assistance Necessary?………………… 221
United States Lifts Its Restrictions
on Oil Exports……………………………………222
Industrial Policies of the United States……………………………. 223
The Export-Import Bank……………………………………………. 224
U.S. Airlines and Boeing Spar over Export-Import
Bank Credit…………………………………………………………. 226
U.S. Solar Industry Dims as China’s Industrial Policy
Lights Up…………………………………………………………….. 227
Carrier Inc. Agrees to Keep Jobs in Indiana………………… 228
Strategic Trade Policy……………………………………………………… 228
Economic Sanctions………………………………………………………… 230
Factors Influencing the Success of Sanctions……………….. 231
Sanctions and Nuclear Weapons: Iran and
North Korea………………………………………………………… 233
Russia Hit by Sanctions over Ukraine………………………… 235
Summary………………………………………………………………………… 236
Key Concepts and Terms………………………………………………… 237
Study Questions………………………………………………………………. 237
CHAPTER 7
Trade Policies for the Developing Nations��239
Developing Nation Trade Characteristics……………………….. 240
Tensions between Developing Nations
and Advanced Nations………………………………………………. 241
Multilateral Contracts………………………………………………. 251
Does the Fair Trade Movement Help Poor
Coffee Farmers?…………………………………………………… 251
Trade Problems of the Developing Nations…………………….. 241
Unstable Export Markets…………………………………………… 242
Falling Commodity Prices Threaten Growth of
Exporting Nations……………………………………………….. 243
Worsening Terms of Trade………………………………………… 244
The OPEC Oil Cartel………………………………………………………. 252
Maximizing Cartel Profits…………………………………………. 253
Does Foreign Direct Investment
Hinder or Help Economic
Development?………………………….

Related Questions: