xport of certain influenced re- trade sophisticated movers uggests that the patt
ID: 470732 • Letter: X
Question
xport of certain influenced re- trade sophisticated movers uggests that the pattern of is (c) the first demand conditions, domestic firms tive endowments, dom rivalry. primarily because government, and national (a) factor structure, firm 11. Porter's of and individual business to by four attributes industries, important to an production activities policy and international t are to its various influence on government 12. Theories of where do exert a strong trade or trade restrictions. they can help the trade can and can promote 13. involved in international business firms ward trade. By lobbying government critical Thinking and Discussion Questions Discuss. Mercantilism is a bankrupt theory that has no place in the modern world. uct is trade fair? Discuss! imports from low-wage countries advocate trade Unions in developed nations often oppose import competition. Is such barriers to protect jobs from what they often characterize as "unfair" (a) unions, competition "unfair"? Do you think that this is in the best interests of surplus (b) the people represent, and/or (c) the country as a whole? should What are the potential costs of adopting a free trade regime? Do you think governments do anything to reduce these costs? What? Nation? Reread the Country Focus "Is China a Neo-mercantilist characterized as Do you think China is pursuing an economic policy that can be in areas we abso b. What should the United States, and other countries, do about this? it can 6. Reread the Country Focus on moving white-collar jobs offshore nations? Who Who benefits from the outsourcing of skilled white-collar jobs to developing g g Will developed nations like the United states suffer from the loss of high-skilled and high b. paying jobs? jobs, such as Is there a difference between the transference of high-paying white-collar blue-collar jobs puter programming and accounting, to developing nations, and own tap the flow of white-Explanation / Answer
Answer of Question No. 5.
(a) Neo-mercantilism is a policy issue where the government encourages exports of the countries manufactured products, discourages imports of the goods of other counties and this helps the government to controls capital movement of the country. In neo-mercantilism the country also use its currency by devaluing it to have a favorable trade balance means more exports than imports of the goods or services. The purpose of neo-mercantilist policies is to increase the foreign reserves held by the government of that country. In the recent years China’s exports have been growing faster than its imports and its government actively following the policies which helps them either increase their exports or reduce their import for example devaluing their currency and keeping it cheap, tariffs are more on imported goods etc. The country have favorable trade balance with almost all the major countries of the world have huge foreign reserve with the government of china. All of the above suggest that China is pursuing an economic policy that is neo-mercantilist.
(b) The United States and other countries continue can put pressure on China to open its markets to imports and make transparent policies regarding its trade with other countries. The countries can encourage China for revaluation of its currency so that it reflects the fair value. If above measures are not successful in that case the United States and other countries can jointly form a group where they can put high tariff on the goods exported from China to counter the policy followed by government of China at least for short term. It will definitely create a pressure on China for fair trade with other countries.
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