Global Trade

Now that you have learned that countries sometimes use and encourage trade barriers to restrict international trade, you are ready to decide if these barriers are warranted in a specific situation.

Chinese import of Ipods and MP3 players are selling better then domestic versions in the United States market. Companies producing these products in the United States are complaining to Congress that something needs to be done to remedy the situation or they my go out of business. They would like Congress to take action to protect American made products.

You serve on the President’s Trade Council and have been asked by the president to meet with these companies to get more information on the problem. You also understand that there are both positive and negative consequences involved in a decision to implement trade barriers.

Do some additional research on the Web to assess the negative consequences of trying to help these companies survive. Be prepared to present these consequences to the company representative when you meet with them. As you prepare for the meeting be sure to:

Make a list of the consequences to a country of initiating trade barriers
Develop supporting reasons for each consequence for use in your presentation to the company representatives
Your own personal decision about whether trade barriers should be imposed on China
Supporting reasons for your decision.