Now that we have examined the motivations, benefits, and issues surrounding so-called “free trade,” it’s time to ask the question: “Free from what?” Module 4 explores attempts by governments to constrain trade. Not surprisingly, we will find that economists are generally skeptical about the specific benefits of tariffs, quotas, and export controls and seek to remove or minimize constraints on trade in most instances—but not necessarily all.
Discussion Requirement
Trade barriers
Select a developed country that has implemented a tariff, and a developing country that manufactures products that are impacted by that same tariff. The current US and China tariff “war” cannot be used since these are the two largest economies in the world. Investigate the economic impact of the trade barrier on the developing country and the developed country. Would you recommend that the developed country eliminate the tariff? Explain your reasoning.
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 600 word limit.
Learning Outcomes
Differentiate the different types of tariff and non-tariff trade barriers.
Judge the welfare effects of tariff trade barriers.
Readings
Required:
Chapter 4 in International Economics
Hoekman, B., & Shepherd, B. (2021). Services trade policies and economic integration: new evidence for developing countries. World Trade Review, 20(1), 115-134. Retrieved from https://www.cambridge.org/core/journals/world-trade-review/article/services-trade-policies-and-economic-integration-new-evidence-for-developing-countries/04BA024C0F1516A44099FC2856CE4602
Recommended:
Chapter 4 PowerPoint slides – International Economics
Krist, W. (2023). Chapter 3: Trade Agreements and Economic Theory. Wilson Center. Retrieved October 11, 2023, from https://www.wilsoncenter.org/chapter-3-trade-agreements-and-economic-theory