The Dilemmas of International Trade Flashcards
What are the four dilemmas of international trade?
distributional dilemma, values dilemma, state goal dilemma, and choices for individual
What is the title of the article?
The dilemmas of international trade
what is distributional dilemma
no trade policy benefits everyone. whichever trade policy the government chooses, it will harm some group. it protects or promotes one sector at the expense of others.
What is the effect of distributional dilemma
it effects the domestic distribution of income, wealth, and political power, trade deficits could shift economic welfare across time.
what is values dilemma
whichever choice is made, some values must be compromised to achieve others. Trade affects society, polity, and culture. Ethical and social values.
what is Sate goals dilemma
tension between trade and mission of state to provide security, independence, and peace for the nation. foreign policy, autonomy and security
What are state actions motivated by
power and autonomy, growth and efficiency
Pros and cons of interdependence
improve economic efficiency and prospects for international peace but constraints the sates from acting independently of others due to national interest.
what is NAFTA
North American Free Trade Agreement
what doe liberal theorist advocate for
advocate for free trade because it maximizes economic efficiency and therefore material standard of living.
What are the concerns of free trade in regards to values dilemma
free trade allows economic considerations to dominate more important ethical ones.
Example of value dilemma
trading with nations that permit shabby treatment of workers. values consideration overlaps distributional effects of trade to generate inequality by undermining the position of workers.
Cultural considerations of value dilemma
promotes resistance to authority and threaten to undermine the cultural industries that sustain national identity.
Ecological values of dilemma
exports of goods that might threaten natural environment or planetary resource
Another value issue
places greater competitive pressure on firms to lower their costs and they in turn pressure their states to alter policies that keeps them from doing health and safety requirements, environmental regulations etc.
Concentrated geographic unemployment brings
social problems including, drugs, crime, inequality, urban violence, and potentially social collapse. Also leads to disproportionate effects on particular ethnic groups and sectoral concentrations and on women and teenagers
How do economist propose we solve values dilemma
in theory is to earn benefits of free trade and use the proceeds to compensate the losers.
Why are states wary of trade
because the interdependence implicit in relying upon foreign actors constrains independent action and threatens autonomy. vulnerable to economic disruptions
national sovereignty
hinder a nation from pursuing some policies of their own such like protectionism
What did sates do to minimize dependence and what are the implications
many states restrict trade in sensitive sectors important to the economy like food, banking, insurance or steel or to national defense such as technology and so on. Could endanger friendly relations and international peace.
What did theorist say about interdependence
they say that trade can force nations to recognize both the need to coexist and coflourish through cooperation.
Dilemma for choices for the individual
Challenges to individuals when they are contemplating any purchase. A moral agent in which they decide if they should by cheap things done from child labor.
Six roles trade affects individuals
As a consumer - free trade because imports are cheaper. As a worker - free trade or protectionism it depends. As a member of an economic class. As a resident of a community. As a citizen of a nation. As an individual.
