Solution Manual for Global Business Today Canadian 4th

Edition by Hill McKaig ISBN 1259024989 9781259024986

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 CHAPTER 6
THE POLITICAL ECONOMY OF INTERNATIONAL TRADE

Text Chapter Outline

OPENING CASE: China Limits Exports of Rare Earth Metals

LEARNING OBJECTIVES

INTRODUCTION

INSTRUMENTS OF TRADE POLICY

Tariffs

Subsidies
Country Focus: Subsidized Wheat Production in Japan
Import Quotas and Voluntary Export Restraints
Local Content Requirements
Administrative Polices
Management Focus: Clearwater Seafoods
Antidumping Policies

THE CASE FOR GOVERNMENT INTERVENTION

Political Arguments for Intervention

Economic Arguments for Intervention

THE REVISED CASE FOR FREE TRADE

Retaliation and Trade War

Domestic Politics

DEVELOPMENT OF THE WORLD TRADING SYSTEM

From Smith to the Great Depression

1947-1979: GATT, Trade Liberalization, and Economic Growth
1980-1993: Disturbing Trends
The Uruguay Round and the World Trade Organization
WTO: Experience to Date
The Future of the WTO: Unresolved Issues and the Doha Round

IMPLICATIONS FOR BUSINESS

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Trade Barriers and Firm Strategy
Policy Implications

LEARNING OBJECTIVES SUMMARY

CRITICAL THINKING AND DISCUSSION QUESTIONS

CLOSING CASE: U.S. Tariffs on Tire Imports from China

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LEARNING OBJECTIVES

1. Identify the policy instruments used by governments to influence international trade flows.
2. Understand why governments sometimes intervene in international trade.
3. Summarize and explain the arguments against strategic trade policy.
4. Describe the development of the world trading system and the current trade issue.
5. Explain the implications for managers of developments in the world trading system.

Chapter Summary

This chapter begins with a discussion of the six main instruments of trade policy, including tariffs, subsidies,
import quotas, voluntary export restraints, local content requirements, and administrative policies. This
section is followed by a discussion of the merits of government intervention into international trade. The
author provides a balanced view of this difficult issue. The second half of the chapter focuses on the
development of the global trading system. A historical context is provided, along with a view of the global
trading system as it exists today. The author acquaints the reader with the General Agreement on Trade and
Tariffs (GATT) and the World Trade Organization.

OPENING CASE: China Limits Exports of Rare Earth Metals

Summary

The opening case describes the trade battle in the export of Chinese rare earth metals. China claimed to have
shut down several rare earth metals mines because of either dwindling supplies or environmental concerns,
resulting in a spike in rare earth metals prices outside of China, putting foreign manufacturers at a cost
disadvantage. Those (foreign) companies who are complaining that the decrease in rare earth metal exports
from China has more to do with allowing Chinese manufacturers up the supply chain, so that they can sell
valuable finished goods to the world rather than lowly raw materials. In other words, some accuse China of
using trade policy to support its industrial policy. Developed countries cry foul, claiming that the export quotas
violate China’s WTO obligations and they filed a complaint. In March, 2014, the WTO issued a ruling against
China concluding that China broke international trade law by restricting the export of rare earth elements and
other metals. China has paid little attention to this ruling. Consequently, many companies who rely on rare
earth metals (Toyota, Renault and Tesla) have stated that they plan to stop using parts that have rare earth
elements in their cars.

QUESTION 1: The WTO claims that China is contravening WTO member rules. In your opinion, is this
true? Is China justified in its actions? Is the WTO justified in its actions?

ANSWER 1: The WTO was probably justified in its ruling against China in that it was believed that China
was using its trade policy as a tool to achieve (unfair) competitive advantage. .

QUESTION 2: What impact has China’s ruling had on mining companies around the world?

ANSWER 2: Governments are encouraging mining companies to expand production of rare earth minerals.
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 QUESTION 3: In spite of the WTO ruling against China, Do you believe that China should continue
this practice? Why? Why not? Discuss.

ANSWER 3: There is no single answer to this question, but it could be used to set up a brief debate.
While the WTO has clearly sided with the complainants, China appears un-phased. China could
argue that its decision to restrict rare earth metals is sincere and solely based upon environmental
concerns or dwindling supplies. Where do you see this story going? Discuss.

Chapter Outline with Lecture Notes and Teaching Tips

INTRODUCTION

A) This chapter explores the political and economic reasons that governments have for intervening
in international trade.

B) The major objective of this chapter is to describe how political realities have shaped, and continue
to shape, the international trading system.

INSTRUMENTS OF TRADE POLICY

A) In this section, the text reviews seven main instruments of trade policy. These are: tariffs,
subsidies, import quotas, voluntary export restraints, local content requirements, antidumping
policies, and administrative policies.

Tariffs

B) A tariff is a tax levied on imports that effectively raises the cost of imported products relative to
domestic products. Specific tariffs are levied as a fixed charge for each unit of a good imported,
while ad valorem tariffs are levied as a proportion of the value of the imported good. The important
thing to understand about a tariff is who suffers and who gains. Consider U.S. duties on Canadian
softwood lumber. The government gains, because the tariff increases government revenues.
Domestic producers gain, because the tariff affords them some protection against foreign
competitors by increasing the cost of imported foreign goods (i.e. lumber from Canada). Consumers
lose since they must pay more for certain imports.

C) Thus, tariffs are unambiguously pro-producer and anti-consumer, and tariffs reduce the overall
efficiency of the world economy.

Subsidies

D) A subsidy is a government payment to a domestic producer. By lowering costs, subsidies help

domestic producers in two ways: they help them compete against low-cost foreign imports and they
help them gain export markets. However, many subsidies are not that successful at increasing the

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international competitiveness of domestic producers. Moreover, consumers typically absorb the costs
of subsidies.

Import Quotas and Voluntary Export Restraints

E) An import quota is a direct restriction on the quantity of some good that may be imported into a
country. A voluntary export restraint is a quota on trade imposed by the exporting country, typically
at the request of the importing country’s government.

F) While import quotas and voluntary export restraints benefit domestic producers by limiting import
competition, they raise the prices of imported goods. The extra profit that producers make when supply
is artificially limited by an import quota is referred to as a quota rent.

Local Content Requirements

G) A local content requirement demands that some specific fraction of a good be produced
domestically. As with import quotas, local content requirements benefit domestic producers, but
consumer face higher prices.

Administrative Policies

H) Administrative trade policies are bureaucratic rules that are designed to make it difficult for
imports to enter a country. The effect of these polices is to hurt consumers by denying access to
possibly superior foreign products.

Antidumping Policies

I) Dumping is variously defined as selling goods in a foreign market below their costs of production,
or as selling goods in a foreign market at below their “fair” market value. Dumping is viewed as a
method by which firms unload excess production in foreign markets. Alternatively, some dumping
may be the result of predatory behaviour, with producers using substantial profits from their home
markets to subsidize prices in a foreign market with a view to driving indigenous competitors out of
that market. Once this has been achieved the predatory firm can raise prices and earn substantial profits.

J) Antidumping polices are policies designed to punish foreign firms that engage in dumping. The
ultimate objective is to protect domestic producers from “unfair” foreign competition.

THE CASE FOR GOVERNMENT INTERVENTION

A) In general, there are two types of arguments for government intervention, political and economic.
Political arguments for intervention are concerned with protecting the interests of certain groups
within a nation (normally producers), often at the expense of other groups (normally consumers).
Economic arguments for intervention are typically concerned with boosting the overall wealth of a
nation (to the benefit of all, both producers and consumers).

Political Arguments for Intervention

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B) Political arguments for government intervention cover a range of issues including protecting jobs,
protecting industries deemed important for national security, retaliating to unfair foreign competition,
protecting consumers from “dangerous” products, furthering the goals of foreign policy, and protecting the
human rights of individuals in exporting countries.

Protecting Jobs and Industries

C) The most common political reason for trade restrictions is "protecting jobs and industries." Usually this
results from political pressures by unions or industries that are "threatened" by more efficient foreign
producers, and have more political clout than the consumers that will eventually pay the costs. The Canadian
Foreign Investment Review Act (FIRA) was put in place decades ago to protect jobs from foreign
encroachment.

National Security

D) Keeping industries "vital for national security" viable is an argument often used for trade restrictions.
While this is reasonable for industries like steel, aerospace, and electronics, in the US the shoe industry has
regularly lobbied that soldiers need boots, and thus the US needs to have a viable shoe industry in order to be
able to provide shoes during a time of war.

Lecture Note: In the United States, the Bureau of Industry and Security enhances the nation's security and its
economic prosperity by controlling exports for national security, foreign security, foreign policy, and short
supply reasons. The Bureau of Industry and Security (U.S. Department of Commerce) maintains a website
at
http://www.bis.doc.gov

Retaliation

E) Government intervention in trade can be used as part of a "get tough" policy to open foreign markets. By
taking, or threatening to take, specific actions, other countries may remove trade barriers. But when
threatened governments don’t back down, tensions can escalate and new trade barriers may be enacted.

Protecting Consumers

F) Consumer protection can also be an argument for restricting imports. The opening case suggests that the
EU’s concern over beef was, in part, due to an interest in protecting consumers. Since different countries do
have different health and safety standards, what may be acceptable in one country may be unacceptable in
others.

Teaching Tip: Direct your students to the Health Canada web site noted in the text at this point for more
information.

Furthering Foreign Policy Objectives

G) On occasion, governments will use trade policy to support their foreign policy objectives. One aspect of
this is to grant preferential trade terms to countries that a government wants to build strong relations with.

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Trade policy has also been used several times as an instrument for pressuring or punishing “rogue states” that
do not abide by international laws or norms. A serious problem with using trade as an instrument of foreign
policy is that other countries can undermine any unilateral trade sanctions. The Helms-Burton Act, which
allowed Americans to sue foreign firms that used property in Cuba confiscated after the revolution, elicited
anger from Canada which held that this law violated their sovereignty.

Protecting Human Rights

H) Concern over human rights in other countries plays an important role in foreign policy. Governments
sometimes use trade policy to improve the human rights policies of trading partners. Governments also use
trade policies to put pressure on governments to make other changes. In recent years the US has had trade
restrictions against Libya, Iran, Iraq, North Korea, Cuba, and other countries whose governments were
pursuing policies that were not viewed favourably by the US government. Unless a large number of countries
choose to take such action, however, it is unlikely to prove successful.

Economic Arguments for Intervention

The Infant Industry Argument

I) The "infant industry" argument suggests that an industry should be protected until it can develop and be
viable and competitive internationally. Unless an industry is allowed to develop and achieve minimal
economies of scale, foreign competitors may undercut prices and prevent a domestic industry from
developing. The infant industry argument has been accepted as a justification for temporary trade restrictions
under the WTO.

J) A problem with the infant industry argument is determining when an industry "grows up." Some industries
that are just plain inefficient and uncompetitive have argued they are still infants after 50 years. The other
problem is that given the existence of global capital markets, if the country has the potential to develop a
viable competitive position its firms should be capable of raising the necessary funds without additional
support from the government.

Strategic Trade Policy

K) Strategic trade policy suggests that in cases where there may be important first mover advantages,
governments can help firms from their countries attain these advantages. Strategic trade policy also suggests
that governments can help firms overcome barriers to entry into industries where foreign firms have an initial
advantage.

THE REVISED CASE FOR FREE TRADE

A) While strategic trade policy identifies conditions where restrictions on trade may provide economic
benefits, there are two problems that may make restrictions inappropriate: retaliation and politics.

Retaliation and Trade War

B) Krugman argues that strategic trade policies aimed at establishing domestic firms in a dominant position
in a global industry are beggar-thy-neighbour policies that boost national income at the expense of other
countries. A country that attempts to use such policies will probably provoke retaliation.
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Domestic Politics

C) Governments do not always act in the national interest when they intervene in the economy. Instead
special interest groups may influence governments. Thus, a further reason for not embracing strategic trade
policy, according to Krugman, is that such a policy is almost certain to be captured by special interest groups
within an economy, who will distort it to their own ends.

DEVELOPMENT OF THE WORLD TRADING SYSTEM

From Smith to the Great Depression

A) Up until the Great Depression of the 1930s, most countries had some degree of protectionism. Great
Britain, as a major trading nation, was one of the strongest supporters of free trade.

B) Although the world was already in a depression, in 1930 the US enacted the Smoot-Hawley tariff, which
created significant import tariffs on foreign goods. As other nations took similar steps and the depression
deepened, world trade fell further.

1947-1979: GATT, Trade Liberalization, and Economic Growth

C) After WWII, the US and other nations realized the value of freer trade, and established the General
Agreement on Tariffs and Trade (GATT).

D) The approach of GATT (a multilateral agreement to liberalize trade) was to gradually eliminate barriers
to trade. Over 100 countries became members of GATT, and worked together to further liberalize trade.

1980-1993: Disturbing Trends

E) During the 1980s and early 1990s the world trading system as “managed” by GATT underwent strains.
First, Japan’s economic strength and huge trade surplus stressed what had been more equal trading patterns,
and Japan’s perceived protectionist (neo-mercantilist) policies created intense political pressures in other
countries. Second, the persistent trade deficits by the US, the world’s largest economy, caused significant
economic problems for some industries and political problems for the government. Thirdly, many countries
found that although limited by GATT from utilizing tariffs, there were many other more subtle forms of
intervention that had the same effects and did not technically violate GATT (e.g. VERs).

The Uruguay Round and the World Trade Organization

F) Against the background of rising protectionist pressures, in 1986 GATT members embarked on their eighth
round of negotiations to reduce tariffs (called the Uruguay Round). This was the most ambitious round to
date.

Services and Intellectual Property

G) The goal was to expand beyond the regulation of manufactured goods and address trade issues related to
services and intellectual property, agriculture, and enforcement mechanism.

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WTO: Experience To Date

H) By 2014 the WTO had 159 members, including China.

WTO as Global Police

I) When the WTO was established, its creators hoped the WTO’s enforcement mechanisms would make it a
more effective policeman of the global trade rules than the GATT had been

J) The WTOs polcing and enforcement measures are having a positive effect. Between 1995-2011 more than
400 trade disputes have been brought to the WTO.

Teaching Tip: Further information on the WTO can be found at the WTO website https://www.wto.org/
.
Expanding Trade Agreements

K) Under the WTO, 68 countries that account for more than 90% of world telecommunications revenues
pledged to open their markets to foreign competition and to abide by common rules for fair competition in
telecommunications. Similarly, 102 countries pledged to open to varying degrees their banking, securities,
and insurance sectors to foreign competition. Like the telecommunications deal, the agreement covers not
just cross-border trade, but also foreign direct investment.

The Future of the WTO: Unresolved Issues and the Doha Round

L) Substantial work still remains to be done on the international trade front. Three issues on the current
agenda of the WTO are the rise of anti-dumping policies, the high level of protectionism in agriculture, and
the lack of strong protection for intellectual property rights in many nations.

Anti-Dumping Actions

M) There has been a proliferation of antidumping actions in recent years, perhaps because of the rather vague
definition of what constitutes dumping. The WTO is encouraging members to strengthen the regulations
governing the imposition of antidumping duties.

Protectionism in Agriculture

N) The WTO is concerned with the high level of tariffs and subsidies in the agricultural sector of many
economies. However, the advanced countries of the world defend the current system because they want to
protect their producers from lower-cost producers from developing nations.

Protecting Intellectual Property

O) The WTO believes that reducing piracy rates in such areas as drugs, software, and music recordings would
have a significant impact on the volume of world trade, and increase the incentive for producers to invest in
the creation of intellectual property.
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Market Access for Nonagricultural Goods and Services

P) Much work still remains. High tarrif rates still persist on certain imports into developed countries. Tariffs
on services still remain higher than on industrial goods.Of ocurse the ultimate aim is to reduce tariff rates to
zero.

Launching a New Round of Talks: Doha

Q) In late 2001, the WTO launched a new round of talks at Doha, Qatar. The agenda includes cutting tariffs
on industrial goods and services, phasing out subsidies to agricultural producers, reducing barriers to cross-
border investment, and limiting the use of anti-dumping laws. The “July package” was agreed to on August
1, 2004. These are frameworks, and not final agreements, but do include an agreement to abolish all forms of
agricultural export subsidies by a certain date. Governments also agreed to launch negotiations to set new
rules streamlining trade and customs procedures and also set guidelines for opening trade in manufactured
products.However since then little progress has been made, and the talks appear to be deadlocked.

IMPLICATIONS FOR BUSINESS

Trade Barriers and Firm Strategy

A) Trade barriers are a constraint upon a firm’s ability to disperse its productive activities. First, trade barriers
raise the cost of exporting products to a country. Second, voluntary export restraints (VERs) may limit a
firm’s ability to serve a country from locations outside that country. Third, to conform to local content
requirements, a firm may have to locate more production activities in a given market than it would otherwise.
All of the above effects are likely to raise the firm’s costs above the level that could be achieved in a world
without trade barriers.

Policy Implications

B) In general, international firms have an incentive to lobby for free trade, and keep protectionist pressures
from causing them to have to change strategies. While there may be short benefits to having governmental
protection in some situations, in the long run these can backfire and other governments can retaliate.

LEARNING OBJECTIVES SUMMARY

This chapter described how the reality of international trade deviates from the theoretical ideal of
unrestricted free trade reviewed in Chapter 5
1.Trade policies such as tariffs, subsidies, antidumping regulations, and local content requirements tend
to be pro-producer and anti-consumer. Gains accrue to producers (who are protected from foreign
competitors), but consumers lose because they must pay more for imports.
2.There are two types of arguments for government intervention in international trade: political and economic.
Political arguments for intervention are concerned with protecting the interests of certain groups, often at
the expense of other groups, or with promoting goals with regard to foreign policy, human rights,
consumer protection, and the like. Economic arguments for intervention are about boosting the overall
wealth of a nation. A common political argument for intervention is that it is necessary to protect jobs.
However, political intervention often hurts consumers and it can be self-defeating. Countries sometimes

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 argue that it is important to protect certain industries for reasons of national security. Some argue that
government should use the threat to intervene in trade policy as a bargaining tool to open foreign markets.
This can be a risky policy; if it fails, the result can be higher trade barriers. The infant industry argument
for government intervention contends that to let manufacturing get a toehold, governments should
temporarily support new industries. In practice, however, governments often end up protecting the
inefficient.
3.Strategic trade policy suggests that with subsidies, government can help domestic firms gain first-mover
advantages in global industries where economies of scale are important. Government subsidies may also
help domestic firms overcome barriers to entry into such industries. The problems with strategic trade
policy are twofold: (a) such a policy may invite retaliation, in which case all will lose, and (b) strategic
trade policy may be captured by special-interest groups, which will distort it to their own ends.
4..The GATT was a product of the postwar free trade movement. The GATT was successful in lowering trade
barriers on manufactured goods and commodities. The move toward greater free trade under the GATT
appeared to stimulate economic growth. The completion of the Uruguay Round of GATT talks and the
establishment of the World Trade Organization have strengthened the world trading system by extending
GATT rules to services, increasing protection for intellectual property, reducing agricultural subsidies,
and enhancing monitoring and enforcement mechanisms.
5.Trade barriers act as a constraint on a firm’s ability to disperse its various production activities to optimal
locations around the globe. One response to trade barriers is to establish more production activities in the
protected country. Business may have more to gain from government efforts to open protected markets to
imports and foreign direct investment than from government efforts to protect domestic industries from
foreign competition.

Critical Thinking and Discussion Questions

1. Do you think governments should take human rights considerations into account when granting
preferential trading rights to countries? What are the arguments for and against taking such a position?

Answer: The answer to the first question clearly is a matter of personal opinion. In stating their
opinions, students should consider the following points. Trade is important to all countries, including
those in the West. Thus, by “keeping the door open” a Western government can have some impact on
another county’s human rights policies. For this policy to have much effect, however, other nations
must adopt similar policies. If a government ties its trading practices too closely to human rights, that
country’s own consumers may be hurt if trade between countries is suspended. Another concern with
tying preferential trading status to human rights is that denying this status may make the human rights
situation worse rather than better. By engaging in trade, the income levels in other countries will
increase, and with greater wealth the people will be able to demand and receive better treatment.

2. Whose interests should be the paramount concern of government trade policy, the interests of
producers (businesses and their employees) or of consumers?

Answer: The long-term interests of consumers should be the primary concern of governments.
Unfortunately consumers, each of whom may be negatively impacted by only a few dollars, are less
motivated and effective lobbyists than a few producers that have a great deal at stake. While in some
instances it could be argued that domestic consumers will be better off if world-class domestic
producers are nurtured and allowed to gain first mover advantages in international markets, it is
doubtful that the government will be better than international capital markets at "picking winners", and
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 will more likely pick the firms with the greatest political clout. While employees may well lose jobs if
there are more efficient foreign competitors, some would argue that this is just the nature of
competition, and that the role of government should be to help these employees get jobs where they
can be efficiently employed rather than to protect them from reality in inefficient firms.

3. Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade
policy should business be pressuring government to adopt?

Answer: According to the textbook, businesses should urge governments to target technologies that
may be important in the future and use subsidies to support development work aimed at
commercializing those technologies. Government should provide export subsidies until the domestic
firms have established first mover advantages in the world market. Government support may also be
justified if it can help domestic firms overcome the first-mover advantages enjoyed by foreign
competitors and emerge as viable competitors in the world market. In this case, a combination of home
market protection and export-promoting subsidies may be called for.

CLOSING CASE: U.S. Tariffs on Tire Imports from China

Summary

The closing case describes the attempts by Washington to counter the rising tide of tire imports from
China that stemmed from intense lobbying from the United Steel Workers union, which represents
15,000 workers at 13 tire plants in the United States. The U. S Commerce Department determined that
imposition of tariffs to counter this surge in Chinese imports was necessary, due to the market
disruption that it was creating. The Chinese called these American tariffs a serious case of
protectionism, whilst arguing that the U.S. was violating WTO rules of which both countries are
members. In some ways, the tariffs were successful in stemming the tide of Chinese tire imports by 34
% but during this time, tire imports from other nations, such as Thailand, Indonesia and Mexico surged.
China responded to the U.S.’s decision by imposing tariffs on the export of certain American products
to China, such as boiler chickens.

QUESTIONS:

1. The group that benefits from import tariffs are domestic producers of the same, or comparable
items. The group that suffers are consumers, who do not have access to a better and/or cheaper
product.

2. If the Chinese had raised tariffs on other U.S imports, a trade war may have developed between the two
countries, with each new tariff resulting in the imposition of a new, reactive tariff.

3. The rise of tire imports from Thailand shows that other countries and producers are quick to "step into the
gap" when there are tariffs restricting another country.

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4. Answers will vary about whether this policy was in the best interests of the U.S., but the economic theories
described in Chapter 5, show that trade barriers and trade wars hurt all parties involved.

Country Focus: Subsidized Wheat Production in Japan

Summary

This feature illustrates that although Japanese wheat growers can grow wheat, it is not practical to do so. The
principle reason for Japanese wheat growers to still be in business is tied to the Japanese government’s
subsidies to keep this sector afloat. Japan imports some 80 percent of its wheat from foreign producers. Yet
tens of thousands of Japanese farmers still grow wheat in a mostly unprofitable manner. To finance its
production, Japan’s tariff rate quota on wheat imports in which a higher tariff rate is imposed once wheat
imports exceed the quota level. Thanks to these and other protectionist policies, the price of wheat in Japan
can be anything from 80- 120 percent higher than the world price. As this part of Japan’s economy is not a
free market economy, its consumers end up suffering because they have to pay more for products containing
wheat. In spite of the obvious disadvantages, Japan continues with this practice because small farmers are an
important constituency and Japanese politicians want their votes.

Questions:

1. A government might undertake an action benefiting a few, at the expense of a larger prt of the population
(ie consumers) due to either political pressure from that small group, or political expediency. The gains to the
small group are easily noted and appreciated, whereas the costs are spread out over a larger group and are
relatively small to any one individual and unnoticeable.
2. Similar actions in Canada can include the former Canadian Wheat Board (see https://www.cwb.ca/) and
any other trade restriction that has been put into place.

Management Focus: Clearwater Seafoods

Summary

This feature describes the importance of quotas in the Canadian fish industry, and its importance to
Clearwater Seafoods. Clearwater owns a large percentage of the Total Allowable Catch (TAC) or the
quota on sea scallops, offshore lobster, cold water shrimps, and other seafood. The company works
with the Canadian Department of Fisheries and Oceans to create a sustainable resource
management system. It is also exploring longer term opportunities in China.

Questions:

1. Many resource extraction industries, such as mining and forestry have quota systems. In some
locations, such as California, drinking water is also subject to some city-by-city quotas.
2. A company serving the global market will always be faced by the issue of changing consumer
preferences. What can help such a company is its experiences in other markets: what worked in one
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 market may also work in another, similar market. The reverse is also true, in that a product launced
unsuccessfully in one market may be assumed to fail in many other, similar, markets.

Additional Readings and Sources of Information

The WTO Kibosh on a U.S. Tax Break: Error! Hyperlink reference not valid.
http://www.bloomberg.com/bw/stories/2002-09-02/the-wto-kibosh-on-a-u-dot-s-dot-tax-break

What is the World Trade Organization?:

https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm

Global Growing Pains:

http://www.businessweek.com/1999/99_50/b3659074.htm

A High Risk, Two-Faced Trade Policy:

http://www.bloomberg.com/bw/stories/2002-03-24/a-high-risk-two-faced-trade-policy

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