pros and cons of trade restrictions

“Restrictions On International Trade Are Counterproductive”. To What Degree Do

You Agree/Disagree With This Statement?

Sina DreesMarkus Roth

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Say “YES“ to TradeRestrictions because

Globalization

KILLS

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“…we need to protect our industries and workers!“

“globalization makes the rich richer and the poorpoorer“

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Free Trade Is a Right –

ABOLISHTRADE RESTRICTIONS

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“Free Trade Enriches Cultures“

“Increasing Commerce Makes War Less likely“

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“It has been said that arguing gainst globalization is like arguing the laws of gravity“

Kofi Annan, 7th Secretary-General of the United Nations

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Approach Is Not Mathematical

Full Attention

Contents

• Intro – Background to Protectionism• Measures - Toolkit

• Tariff• Non-Tariff

• Arguments in Favor and Against Trade Restrictions• Summary• Questions

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Intro• Protectionism -

Mercantilist Concept

• Adam Smith – Absolute Advantage

• David Ricardo – Concept of Comparative Advantage

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Intro Measures Arguments Summary Questions

Measures• Tariff – protective or/and revenue creating

• Taxes

• Surcharges

• Duties

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Intro Measures Arguments Summary Questions

• Non-Tariff

• Quota

• Exchange Control

• Embargo

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Intro Measures Arguments Summary Questions

Arguments Against Trade Restrictions

• Higher Prices

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Intro Measures Arguments Summary Questions

Contra Trade Restrictions

• Less ConsumerChoices

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Intro Measures Arguments Summary Questions

Contra Trade Restrictions

• Retaliation by harmed Countries

• Loss of Jobs at International Companies

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Intro Measures Arguments Summary Questions

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“We will reduce our restrictions if you will do like wise.”

“Let us reduce our restrictions against underdeveloped countries so that they can benefit from sales to us.”

“Let us stop buying chrome from an African nation whose internal policies we do not approve.”

“trade policy in the United States is a political matter.”

Intro Measures Arguments Summary Questions

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• Protect National Defense And Citizens’ Health

In Favor ofTrade Restrictions

Intro Measures Arguments Summary Questions

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• Protect New & Weak Industries

In Favor ofTrade Restrictions

Intro Measures Arguments Summary Questions

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• Protect Domestic Jobs in the Face of Foreign Competition

In Favor ofTrade Restrictions

Intro Measures Arguments Summary Questions

• Protect against Dumping

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In Favor of Trade Restrictions

Intro Measures Arguments Summary Questions

• Prohibit Trade with the Enemy

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In Favor of Trade Restrictions

Intro Measures Arguments Summary Questions

• Lower Price for the Consumers

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Intro Measures Arguments Summary Questions

In Favor of Trade Restrictions

Summary• Advantages of Free Trade • Free Product Choice • More Jobs • Retaliation by harmed Countries

• Protection for • Consumers • Citizens’ health • Employees • Weak and New Industries

• Man Must Choose Between Freedom and Protectionism22

Intro Measures Arguments Summary Questions

“It has been said that democracy is the worst form of government except all the others that have been tried.”

Sir Winston ChurchillBritish politician (1874 - 1965)

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Intro Measures Arguments Summary Questions

•?

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Intro Measures Arguments Summary Questions