GRAM Lites on 96+ civics
Guest
Posts: n/a
GRAM Lites on 96+ civics
1 d) Countervailing duties are used by governments to “retaliate” against trade policies of other countries. They target items not typically found in the same category of which the item is under dispute. For instance, country 1 makes apples, and country 2 imports them. However, country 1 has an active policy of high steel tariffs on country 2, in order to keep country 2’s steel out. Then country 2 may tariff the import of apples, as a countervailing duty, as a “payback” of sorts on country 1’s main export. Rather than resolve the issue over the steel product.
Anti-dumping duties have a direct affect on two competing industries in two countries. One country may put extremely high tariffs on another country’s same item, simply to keep those products out of the domestic market. This is to prevent outside goods from flooding the market and the residual side-effects such as lost jobs, weak sales of domestically produced item, etc. An instance of this in US trade policy was the Steel Anti-Dumping Duties on Japan. Japan was attempting to flood the US domestic hot-rolled steel. Therefore, to protect the interests of the American economy and jobs, the US imposed high anti-dumping duties on Japanese steel, which effectively made it unwanted on the US steel market.
2 c) The results from the real income gain for capitalists and workers reveals that capitalists would be highly supportive of free trade. However, a slight decrease in real income for workers indicates that they would not be as supportive in free trade. The workers would be earning a smaller portion of real income in a free trade market.
2 d) Unfortunately these models can provide no answer to political and social issues that must be dealt when using free trade. Ultimately, one country’s workforce may suffer in the form of lost jobs, decreased wages, and so forth. These models do not provide insight to the social affects of free trade on a economy. Thus, the trade policy may be changed not on a basis of explanation provided by the models, but due to political interests.
[Modified by Night_Minx, 2:58 PM 10/22/2002]
Anti-dumping duties have a direct affect on two competing industries in two countries. One country may put extremely high tariffs on another country’s same item, simply to keep those products out of the domestic market. This is to prevent outside goods from flooding the market and the residual side-effects such as lost jobs, weak sales of domestically produced item, etc. An instance of this in US trade policy was the Steel Anti-Dumping Duties on Japan. Japan was attempting to flood the US domestic hot-rolled steel. Therefore, to protect the interests of the American economy and jobs, the US imposed high anti-dumping duties on Japanese steel, which effectively made it unwanted on the US steel market.
2 c) The results from the real income gain for capitalists and workers reveals that capitalists would be highly supportive of free trade. However, a slight decrease in real income for workers indicates that they would not be as supportive in free trade. The workers would be earning a smaller portion of real income in a free trade market.
2 d) Unfortunately these models can provide no answer to political and social issues that must be dealt when using free trade. Ultimately, one country’s workforce may suffer in the form of lost jobs, decreased wages, and so forth. These models do not provide insight to the social affects of free trade on a economy. Thus, the trade policy may be changed not on a basis of explanation provided by the models, but due to political interests.
[Modified by Night_Minx, 2:58 PM 10/22/2002]
Thread
Thread Starter
Forum
Replies
Last Post
HONDAlover369
Mid-West (Sales)
13
Dec 10, 2009 12:34 PM