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Assignment 1. Scan the opinions on protectionism listed below and find the ones that appeal to you. Ground your choice





 

1. The road of isolationism and protectionism... ends in danger and decline. I am for free commerce with all nations, political connection with none. (Thomas Jefferson)

2. In Europe, we're seeing a wave of so-called economic patriotism. Protectionism is pernicious, pervasive, the ill-conceived political response to globalization and on the increase. (John Cridland)

3. Protectionism is the ally of isolationism, and isolationism is the Dracula of American foreign policy. (William G. Hyland)

4. Protectionism plays well if you can tie it to outsourcing and jobs. (David Joy)

5. Protectionism will do little to create jobs and if foreigners retaliate, we will surely lose jobs. (Alan Greenspan)

6. The philosophy of protectionism is a philosophy of war. (Ludwig von Mises)

7. Protectionism in all its guises, both domestic and international, does not contribute to the welfare of American workers,... At best, it is a short-term fix at a cost of lower standards of living for the nation as a whole. (Alan Greenspan)

8. Protectionism remains the major threat to global growth. (Lorenzo Codogno)

9. … to jointly promote balanced and orderly development of the world economy, all countries, major economies in particular, should not only adopt responsible economic policies to introduce necessary economic restructuring, keep major currencies reasonably stable and prevent trade protectionism, but also intensify dialogues on macro-economic policies and, most importantly, coordination on major issues that bear on the overall development of the world economy and the common interest of all countries. (Hu Jintao)

10. I'm afraid that if national protectionism takes root it's going to result in tit-for-tat retaliation. (Charlie McCreevy)

11. Protectionism is the use of scare tactics, the use of unsound scientific information in an attempt to protect our market. In this case I believe that sound science dictates that it is time to open the border. (Christopher Bond)

(Source: http://en.thinkexist.com)

Assignment 2. Scan the following text and say whether the following statements are true or false.

§ Taxes on imports (tariffs) and numerical limitations on imports (quotas) can disrupt international division of labor.

§ Reducing taxes and regulations generally boosts national economies.

§ Protectionism is the only hope of infant industries in their competition with established companies.

§ According to the author, the loss of employment in certain industries which would undeniably occur with a movement to free trade is due to the current absence of free trade.

 

Economists of all schools recognize the value of free trade: greater overall production. This greater production is due to the freedom of each producer to specialize in that line where he or she has a natural advantage. The natural advantage of each trading partner results from the differences among people and locations.

Adam Smith enunciated the principle that it is foolish to produce at home that which can be obtained more cheaply abroad. This is true not only literally of the home, but of the county, state, region and country as well.

This emphasizes that there is no distinction between trade and international trade in principle − one "exports" his labor to "import" goods consumed, as it is a cheaper means of obtaining goods than producing the consumed goods directly.

Despite the value of free trade there are continuous calls for disruption of an international division of labor by way of taxes on imports (tariffs) and numerical limitations on imports (quotas). Such arguments are ultimately special interest pleadings advanced for the sake of a transfer of income to the special interest at the expense of the rest of the economy.

Henry George summarized the fallacy of protectionism this way: "What protection teaches us, is to do to ourselves in time of peace what enemies seek to do to us in time of war."

A review of the seven most common protectionist arguments and their rebuttals follows.







Date: 2015-09-23; view: 385; Нарушение авторских прав



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