Global Managerial Economics 3IP

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1000 Words

 

As a business owner, you need to approach the issue of globalization and trade in context. With all the complicated tariff and nontariff trade policies, organizations, and government involvement, the important question to ask is why the United States maintains certain economic policies.

Consider the following questions:

  • Research where you would find the U.S. international trade policies and their history as they apply to various industries.
    • Chose two industries, and focus on those.
  • Do the economic trade policies today help or hurt business owners and laborers?
    • Is the automobile industry protected?
    • Is it considered an infant industry?
    • What tariff policy is in place for automobile manufacturers?
    • What type of administered protection is in place, if any?
    • Compare the automobile industry to the two industries you chose to research.
  • How could the state or local representative help or hurt a business owner in the era of globalization?
  • How did the policies for manufacturers of automobiles evolve? For example, what influences do the following organizations have on business owners, and what is their history?
    • The World Bank
    • The IMF
    • GATT
    • The European Union
    • NAFTA
    • The Doha Round
  • Does NAFTA affect the automobile industry’s decisions on what to do with labor costs? Capital costs? If so, how? Was this trade agreement good for the United States from an economic standpoint? Was it good for Mexico from and economic standpoint?

 

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