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IBUS2301:
International Business Management
Tutorial #3, March 24 and 25
Chapters 7 and 9: Political Economy of Trade and ...
IBUS2301:
Int’l Business Mgmt
Outline
• 2 scenarios
• Government intervention
• Regional economic integration
IBUS2301:
Int’l Business Mgmt
2 SCENARIOS
IBUS2301:
Int’l Business Mgmt
2 Scenarios
• 4 groups
• 2 judges
• 7 minutes to prepare
• 2 minutes to present
Scenario #1
There is a long-running dispute between Brazil and the
United States over U.S. cotton subsidies. These
subsidi...
Scenario #2
Along with Iceland and Switzerland, Norway is one of
the few countries in Western Europe to not join the
Europ...
IBUS2301:
Int’l Business Mgmt
GOVERNMENT INTERVENTION
3/25/2014
IBUS2301:
Int’l Business Mgmt
For
• Protect jobs and consumers
• National security
• Retaliation
• Foreign polic...
Source: The Economist (URL in notes)
Source: AG Professional (URL in notes)
Source: www.just-style.com/news (full URL in notes)
IBUS2301:
Int’l Business Mgmt
REGIONAL ECONOMIC INTEGRATION
IBUS2301:
Int’l Business Mgmt
REI
For
• Free trade arguments
• Less parties to negotiate
• Political cooperation
• Regiona...
Levels of Economic Integration
Source: EurActive (URL in notes)
Source: The New York Times (URL in notes)
Source: EuroNews (URL in notes)
Questions?
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IBUS2301 - Tutorial #3 - Chapters 7 and 9 - Political economy of trade and REI

In this tutorial, we cover two scenarios related to the issues of government intervention and regional economic integration. Scenario 1 concerns the ongoing dispute between the U.S. and many countries in South America and Africa over the U.S.'s farming subsidies. Scenario 2 concerns a country's decision to join or not join a regional trade agreement, in this case Norway's decision to not join the E.U.

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IBUS2301 - Tutorial #3 - Chapters 7 and 9 - Political economy of trade and REI

  1. 1. IBUS2301: International Business Management Tutorial #3, March 24 and 25 Chapters 7 and 9: Political Economy of Trade and REI Tutor: Preston Teeter, p.teeter@business.uq.edu.au
  2. 2. IBUS2301: Int’l Business Mgmt Outline • 2 scenarios • Government intervention • Regional economic integration
  3. 3. IBUS2301: Int’l Business Mgmt 2 SCENARIOS
  4. 4. IBUS2301: Int’l Business Mgmt 2 Scenarios • 4 groups • 2 judges • 7 minutes to prepare • 2 minutes to present
  5. 5. Scenario #1 There is a long-running dispute between Brazil and the United States over U.S. cotton subsidies. These subsidies have included direct payments to producers and paying significant portions of their insurance premiums. Group 1: You support the use of subsidies in this case. Make the case as to why, and how, these should be continued. Group 2: You recommend that the U.S. should quickly change its subsidy program. Explain why and how this should be done.
  6. 6. Scenario #2 Along with Iceland and Switzerland, Norway is one of the few countries in Western Europe to not join the European Union. There are currently 28 member states in the E.U. Group 3: You support Norway’s decision to not join the E.U. Make the case as to why this is the best decision. Group 4: You recommend that Norway should apply for E.U. membership. Explain why.
  7. 7. IBUS2301: Int’l Business Mgmt GOVERNMENT INTERVENTION
  8. 8. 3/25/2014 IBUS2301: Int’l Business Mgmt For • Protect jobs and consumers • National security • Retaliation • Foreign policy objectives • Protecting human rights • Infant industry & FMA Against • Inefficient use of tax dollars • Increases costs to consumers • Trade wars • WTO violations Government Intervention What are the arguments for and against government intervention in international trade?
  9. 9. Source: The Economist (URL in notes)
  10. 10. Source: AG Professional (URL in notes)
  11. 11. Source: www.just-style.com/news (full URL in notes)
  12. 12. IBUS2301: Int’l Business Mgmt REGIONAL ECONOMIC INTEGRATION
  13. 13. IBUS2301: Int’l Business Mgmt REI For • Free trade arguments • Less parties to negotiate • Political cooperation • Regional power • Reduces complexity Against • Loss of sovereignty • Winners and losers • Regionalization – Trade diversion What are the arguments for and against regional economic integration?
  14. 14. Levels of Economic Integration
  15. 15. Source: EurActive (URL in notes)
  16. 16. Source: The New York Times (URL in notes)
  17. 17. Source: EuroNews (URL in notes)
  18. 18. Questions?
  • Hanif01

    Mar. 26, 2017
  • NguyenNgoPhuongUyen

    Nov. 17, 2016

In this tutorial, we cover two scenarios related to the issues of government intervention and regional economic integration. Scenario 1 concerns the ongoing dispute between the U.S. and many countries in South America and Africa over the U.S.'s farming subsidies. Scenario 2 concerns a country's decision to join or not join a regional trade agreement, in this case Norway's decision to not join the E.U.

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