<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073102555/324680/globe.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (1.0K)</a>CHAPTER 6

Opening Case
The Political Economy of International Trade

Introduction

Instruments of Trade Policy
     Tariffs
     Subsidies
     Import Quotas and Voluntary Export Restraints

Country Focus
Subsidized Wheat Production in Japan
     Local Content Requirements
     Administrative Policies
     Antidumping Policies

The Case for Government Intervention
     Political Arguments for Intervention

Management Focus
U.S. Magnesium Seeks Protection
     Economic Arguments for Intervention

The Revised Case for Free Trade
     Retaliation and Trade War
     Domestic Politics

Development of the World Trading System
     From Smith to the Great Depression
     1947–1979: GATT, Trade Liberalization, and Economic Growth
     1980–1993: Protectionist Trends
     The Uruguay Round and the World Trade Organization
     WTO: Experience to Date
     The Future of the WTO: Unresolved Issues and the Doha Round

Country Focus
Estimating the Gains from Trade for America

Implications for Managers
     Trade Barriers and Firm Strategy
     Policy Implications

Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
Subsidy Dogfight—Boeing versus Airbus