Four Controversies
We begin with four controversies that show the importance of current issues addressed by international economics.
- Four controversial developments that frame the scope of what you will learn:
- The Trade War of 2018
- Immigration
Chapter 1
International Economics Is Different
International Economics Is Different The introduction to the subject of international economics has three major purposes: Show that international economics addresses important and interesting current events and issues. Show why international economics is special. Provide a broad overview of the book. We begin with four controversies that show the importance of current issues addressed by international economics.
Slide21
知识点7
案例4
习题60
Knowledge Points
知识点
Economics and the Nation-State
International Economics Is Different
- The fact that nations have their sovereignty, their separate interests, and their separate policies means that
- nobody is in charge of the whole world economy.
- Among the most important policies that each country can manipulate separately are policies toward international movement of resources, government taxation and spending, and money and exchange rates.
What Is a Nation?
The third controversy is about Britain’s relationship with the rest of the European Union. A slim majority of U.K. voters in 2016 voted to leave the EU. While proponents of “remain” stressed the economic benefits of being part of the EU, proponents of “leave” stressed the need to reassert national sovereignty in such areas as control of immigration.
- Nations are not like regions or families, they are sovereign.
- No central court can enforce its will on them with a global police force.
- A nation often ignores the interests of foreigners.
The Trade War of 2018
The first controversy examines the views of U.S. President Donald Trump and his trade policy actions during his first two years in office, which led to the largest trade war since the Great Depression. Soon after his inauguration in 2017, Trump withdrew the United States from the Trans-Pacific Partnership, and later that year he commenced the process of renegotiating the North American Trade Agreement with Canada and Mexico.
- Four controversial developments that frame the scope of what you will learn:
- The Trade War of 2018
- Immigration
Immigration
The second controversy arises from international migration, especially the increasingly vehement complaints about immigrants in many of the major receiving countries. In these countries a rather large (10 percent or more) and rising percentage of the population is foreign-born, including many who are unauthorized. Opponents accuse immigrants of causing general economic harm, imposing fiscal costs as immigrants use government services, and increasing crime.
- Four controversial developments that frame the scope of what you will learn:
- The Trade War of 2018
- Immigration
Brexit
The third controversy is about Britain’s relationship with the rest of the European Union. A slim majority of U.K. voters in 2016 voted to leave the EU. While proponents of “remain” stressed the economic benefits of being part of the EU, proponents of “leave” stressed the need to reassert national sovereignty in such areas as control of immigration.
- Four controversial developments that frame the scope of what you will learn:
- The Trade War of 2018
- Immigration
China’s Exchange Rate
The fourth controversy is the exchange rate value of the Chinese yuan. From the mid-1990s to 2005, the Chinese government maintained a fixed exchange rate of the yuan to the U.S. dollar. As China’s trade surplus increased and the Chinese government continually had to enter the foreign exchange market to buy dollars and sell yuan to keep the exchange rate steady, the United States and the EU increasingly complained about the fixed rate.
- Four controversial developments that frame the scope of what you will learn:
- The Trade War of 2018
- Immigration
Cases
案例与情境
The first controversy examines the views of U.S. President Donald Trump ...
The first controversy examines the views of U.S. President Donald Trump and his trade policy actions during his first two years in office, which led to the largest trade war since the Great Depression. Soon after his inauguration in 2017, Trump withdrew the United States from the Trans-Pacific Partnership, and later that year he commenced the process of renegotiating the North American Trade Agreement with Canada and Mexico.
查看原始摘录
The first controversy examines the views of U.S. President Donald Trump and his trade policy actions during his first two years in office, which led to the largest trade war since the Great Depression. Soon after his inauguration in 2017, Trump withdrew the United States from the Trans-Pacific Partnership, and later that year he commenced the process of renegotiating the North American Trade Agreement with Canada and Mexico. In early 2018 he imposed temporary safeguard tariffs on imports of washing machines and solar panels. Then, following investigations which found that imports of steel and aluminum were threats to national security, in March 2018 Trump imposed tariffs, with temporary exemptions for a number of countries. His administration induced South Korea and Argentina to accept “voluntary” steel export restraints and imposed quotas (instead of tariffs) on steel imports from Brazi
Trump’s trade policies and the trade war involve topics that are ...
Trump’s trade policies and the trade war involve topics that are central to Chapters 2-16 of the book, including: National gains from international trade (both imports and exports, not at the expense of other countries). National and global effects of tariffs, quotas, and voluntary export restraints. The potential for a large country to shift international trade to gain additional national benefits.
查看原始摘录
Trump’s trade policies and the trade war involve topics that are central to Chapters 2-16 of the book, including: National gains from international trade (both imports and exports, not at the expense of other countries). National and global effects of tariffs, quotas, and voluntary export restraints. The potential for a large country to shift international trade to gain additional national benefits. The risk of retaliation by other countries, and the likelihood that all countries in a resulting trade war lose. The role of the WTO and the use of U.S. Section 301. The shortcomings of the national defense argument for protection. Dumping, antidumping duties, safeguard actions, export subsidies, and countervailing duties. The economics of free trade areas. Foreign direct investment and the global activities of multinational enterprises. The national trade balance as driven by the difference
The fourth controversy is the exchange rate value of the Chinese ...
The fourth controversy is the exchange rate value of the Chinese yuan. From the mid-1990s to 2005, the Chinese government maintained a fixed exchange rate of the yuan to the U.S. dollar. As China’s trade surplus increased and the Chinese government continually had to enter the foreign exchange market to buy dollars and sell yuan to keep the exchange rate steady, the United States and the EU increasingly complained about the fixed rate.
查看原始摘录
The fourth controversy is the exchange rate value of the Chinese yuan. From the mid-1990s to 2005, the Chinese government maintained a fixed exchange rate of the yuan to the U.S. dollar. As China’s trade surplus increased and the Chinese government continually had to enter the foreign exchange market to buy dollars and sell yuan to keep the exchange rate steady, the United States and the EU increasingly complained about the fixed rate. In 2005 the Chinese government began to allow gradual increases in the exchange-rate value of the yuan. In mid-2008, in response to the worsening global financial and economic crisis, the Chinese government reverted to a fixed exchange rate. Then, as the Chinese economy resumed its rapid growth and China’s government continued to amass international reserves through its intervention to defend the fixed exchange rate, foreign pressures reemerged. In mid-201
In mid-2015 the U.S. government imposed much higher tariff duties on ...
In mid-2015 the U.S. government imposed much higher tariff duties on U.S. imports of tires from China (by using U.S. antidumping and antisubsidy laws). This action comes several years after temporary high U.S. tariffs that were in effect during 2009-2012. Using economic analysis, how do tire markets adjust to the higher tariff duties?
查看原始摘录
In mid-2015 the U.S. government imposed much higher tariff duties on U.S. imports of tires from China (by using U.S. antidumping and antisubsidy laws). This action comes several years after temporary high U.S. tariffs that were in effect during 2009-2012. Using economic analysis, how do tire markets adjust to the higher tariff duties? What is the economic analysis of winners and losers from this U.S policy action? What are the politics of imposition of the duties, both within the United States and internationally? Overall, do the tariff duties provide net benefits to the United States? If political pressure impels the U.S. government to do something, and with a view to maximizing net national economic benefit or minimizing net national economic cost, what is the best policy alternative that could be used instead of antidumping and antisubsidy tariff duties?
Exercises
习题与答案
题目 1Four Controversies
In 2018, why did the United States impose temporary safeguard tariffs beginning at 30 percent on imports of solar panels and up to 50 percent on imports of washing machines?
- A) The United States wanted to ensure that it remained a net exporter of washing machines and solar panels.
- B) The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries.
- C) Because of growing U.S. demand for washing machines and solar panels, the United States government saw the opportunity to increase government revenue and imposed tariffs on these products.
- D) The United States government imposed tariffs on washing machines and solar panels in retaliation for other countries' tariffs on U.S. exports of durable goods.
正确答案：B | The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries.
难度：1 Easy Bloom's：Remember
题目 2Four Controversies
What was the rationale the United States used to justify imposing tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum in 2018?
- A) The tariffs on steel and aluminum were in retaliation for China and Mexico imposing tariffs on U.S. exports of pork and other products to those countries.
- B) The United States government wanted to protect the steel and aluminum industries until firms in those industries achieved lower production costs associated with scale economies.
- C) The U.S. Department of Commerce found that imports of steel and aluminum threatened United States national security.
- D) The United States government determined that China, a major exporter of steel and aluminum to the United States, was able to charge a lower price in the U.S. market because of government subsidies provided to Chinese steel and aluminum producers.
正确答案：C | The U.S. Department of Commerce found that imports of steel and aluminum threatened United States national security.
难度：2 Medium Bloom's：Understand
题目 3Four Controversies
In July 2018 President Trump acted on recommendations from the Commerce Department and imposed 25 percent tariffs on 818 Chinese products exported to the United States in retaliation for the Chinese government's
- A) support of North Korea's nuclear weapons program.
- B) nationalization of U.S. firms located in China.
- C) direct foreign investment in the United States.
- D) unfair policies and practices toward U.S. intellectual property such as patents, copyrights, and trade secrets.
正确答案：D | unfair policies and practices toward U.S. intellectual property such as patents, copyrights, and trade secrets.
难度：2 Medium Bloom's：Understand
题目 4Four Controversies
What is an effect of a tariff on steel imports to the United States?
- A) Foreign consumers benefit from the effective world-wide increase in the price of steel.
- B) U.S. consumers benefit from the increased production of better-quality steel in the United States.
- C) U.S. steel producers benefit as the product's price rises and domestic production increases.
- D) U.S. steel workers lose because the increase in the price of steel results in decreased production and unemployment in the steel industry.
正确答案：C | U.S. steel producers benefit as the product's price rises and domestic production increases.
难度：2 Medium Bloom's：Understand
题目 5Four Controversies
If a country is concerned about protecting a particular industry for national security reasons, which of the following policies is most effective from an economic standpoint?
- A) Voluntary export restraints on countries exporting goods to the United States
- B) Targeted government subsidies
- C) Protectionist tariffs
- D) Import licensing
正确答案：B | Targeted government subsidies
难度：2 Medium Bloom's：Understand
题目 6Four Controversies
Which of the following is NOT a key economic feature of the European Union (EU)?
- A) A customs union, which imposes common tariffs on imports from non-EU
- B) A common currency, the euro, used by all member countries
- C) A single market that promotes free movements of goods, services, financial capital, and people among EU member countries
- D) London's dominance as Europe's financial center
正确答案：B | A common currency, the euro, used by all member countries
难度：1 Easy Bloom's：Remember
题目 7Four Controversies
Given the following policy options, how could China's government be most likely to encourage higher growth of China's exports to other countries?
- A) Buy its own currency, the yuan, and sell foreign currency in the foreign exchange markets
- B) Sell its own currency, the yuan, and buy foreign currency in the foreign exchange markets
- C) Allow its own currency, the yuan, to appreciate against foreign currencies by not intervening in foreign exchange markets
- D) Use its policy toward the exchange rate to prevent any devaluation of the yuan
正确答案：B | Sell its own currency, the yuan, and buy foreign currency in the foreign exchange markets
难度：3 Hard Bloom's：Analyze
题目 8Four Controversies
Which of the following was NOT an argument in favor of the United Kingdom (UK) leaving the European Union (EU)?
- A) Proponents of leaving stressed that the UK needed to reestablish British sovereignty.
- B) Proponents of leaving wanted greater control over immigration.
- C) Proponents of leaving wanted greater access to markets in the other EU member countries.
- D) Proponents of leaving believed the UK paid a disproportionate share of membership fees.
正确答案：C | Proponents of leaving wanted greater access to markets in the other EU member countries.
难度：1 Easy Bloom's：Remember
题目 9Four Controversies
What is the effect of a country's saving rate on trade deficits?
- A) A low savings rate means that consumers are buying more, and more buying leads to an increase in a country's trade deficit.
- B) A low savings rate means people are spending more than they earn, and that results in increased financial difficulties for consumers, higher interest rates, and fewer international sales, resulting in a decrease in a country's trade deficit.
- C) A high savings rate means there is more money available for investment, resulting in greater production and increased international sales which, in turn, leads to lower trade deficits.
- D) A country's savings rate has no effect on the country's trade deficit.
正确答案：A | A low savings rate means that consumers are buying more, and more buying leads to an increase in a country's trade deficit.
难度：3 Hard Bloom's：Analyze
题目 10Four Controversies
"Job-seeking immigration brings net economic benefits not only to the immigrants, but also to the receiving country overall." But there are winners and losers within the receiving country. Who among the following can be considered as a winner within the receiving country?
- A) The workers who compete with the immigrants for jobs
- B) The households who want to rent the same kinds of apartments the immigrants want to rent.
- C) The consumers who buy the products that the immigrants help to produce
- D) None of these options are correct.
正确答案：C | The consumers who buy the products that the immigrants help to produce
难度：1 Easy Bloom's：Remember
题目 11Four Controversies
Which of the following is an impact of increased illegal immigration on an economy?
- A) The rate of inflation in the receiving country increases.
- B) The demand for labor in the receiving country declines.
- C) The demand for government services like education and health care increases.
- D) The real wage rate of workers increases.
正确答案：C | The demand for government services like education and health care increases.
难度：1 Easy Bloom's：Remember
题目 12Four Controversies
The unskilled wage rate in a country will probably decline if
- A) corporate taxes are lowered by the government.
- B) there's increased immigration of low-skilled workers.
- C) the aggregate demand for goods and services increases in the country.
- D) the demand for unskilled workers increases.
正确答案：B | there's increased immigration of low-skilled workers.
难度：1 Easy Bloom's：Remember
Manual Preview
教师手册摘录
International Economics Is Different
The introduction to the subject of international economics has three major purposes: Show that international economics addresses important and interesting current events and issues. Show why international economics is special. Provide a broad overview of the book.
We begin with four controversies that show the importance of current issues addressed by international economics.
The first controversy examines the views of U.S. President Donald Trump and his trade policy actions during his first two years in office, which led to the largest trade war since the Great Depression. Soon after his inauguration in 2017, Trump withdrew the United States from the Trans-Pacific Partnership, and later that year he commenced the process of renegotiating the North American Trade Agreement with Canada and Mexico. In early 2018 he imposed temporary safeguard tariffs on imports of washing machines and solar panels. Then, following investigations which found that imports of steel and aluminum were threats to national security, in March 2018 Trump imposed tariffs, with temporary exemptions for a number of countries. His administration induced South Korea and Argentina to accept “voluntary” steel export restraints and imposed quotas (instead of tariffs) on steel imports from Brazil. In June Trump ended the temporary exemptions and imposed tariffs on imports of steel and aluminum from Canada, Mexico, and European Union (EU) countries. The first front of the trade engaged as China, Mexico, the EU, and Canada imposed retaliatory tariffs on imports from the United States.
Slide Outline
课件线索
- What Is a Nation?
- Four Controversies
- The Trade War of 2018
- Immigration
- Brexit
- China’s Exchange Rate
- Economics and the Nation-State
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