The Regulatory Framework: Key Concepts Have control systems to benefit Businesses & Workers Free Trade Opportunities Governments Examples: tarrifs, subsidies, import quotas, policies, WTO & GATT memberships, etc PEOPLE Consumers & Threats Have control systems to protect Chapter 7 - Discussion Questions Martin Jacques - When China Rules the World – 10.04 m https://www.youtube.com/watch?v=Og8zBhDDkEQ 1. Do you think that governments should consider Human Rights when granting preferential trading rights to countries? What are the for & against arguments and the concluding basis for your position? 2. Whose interests should be paramount concern of government trade policy – the interests of producers (businesses and their employees) or those of consumers? 3. Given the arguments to the new trade theory & strategic trade policy, what kind of trade policy should business be pressuring government to adopt? Case Study – GFC & Protectionism GFC Explained - http://www.youtube.com/watch?v=Q-zp5Mb7FV0 1. Why do you think calls for protectionism are greater during sharp economic contractions than boom periods? 2. Despite the sharp economic contraction during 2008-2009, the increase in protectionist measures was fairly modest. Why do you think this was the case? 3. During 2008-2009, many developed nations gave subsidies to their automobile producers. How might this distorted international trade? Was this a reasonable thing to do given the circumstances? 4. What might occur if renewed economic slowdown triggered a wave of protectionist measures around the world? Would protectionism protect jobs, or would it make things worse? 5. The volume of world trade rebounded sharply in 2010 on the back of a fairly modest growth rate in the world economy. What does this tell you about the nature of international production in today’s global economy? What does this tell you about the vulnerability of the world economy to any future trade wars?