Evaluate the extent to which protectionism may be justified in international trade

Evaluate the extent to which protectionism may be justified in international trade

how stakeholders will be effected

my opinion

In my point of view, protectionism is important to “preserve” the goods of one’s own country. Of course protectionism can anti-globalize a country so it is crucial to not to over protect. After all, it is not always good to expose one’s country to the outside forces. In history, according to what happened to East Asian countries such as Korea, Japan, and China, defending one’s own country from other countries help. Countries can develop their own ways of producing goods and services in creative ways without others help. Imposing more tariffs on imports or increasing import quotas would be part of protectionism.

At the same time, if countries conceal themselves completely from the outside world, it would be detrimental for them. To maintain favorable relationships with other countries, they should open themselves to others to a certain degree. For example, North Korea’s concealment from other countries are mostly bringing negative consequences. The nation are starving to death and international hostilities are increasing and increasing due to lack of communication.

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Evaluate the extent to which protectionism may be justified in international trade how stakeholders will be effected my opinion In my point of view, protectionism is important to “preserve” the goods of one’s own country. Of course protectionism can anti-globalize a country so it is crucial to not to over protect. After all, it is not always good to expose one’s country to the outside forces. In history, according to what happened to East Asian countries such as Korea, Japan, and China, defending one’s own country from other countries help. Countries can develop their own ways of producing goods and services in creative ways without others help. Imposing more tariffs on imports or increasing import quotas would be part of protectionism. At the same time, if countries conceal themselves completely from the outside world, it would be detrimental for them. To maintain favorable relationships with other countries, they should open themselves to others to a certain degree. For example, North Korea’s concealment from other countries are mostly bringing negative consequences. The nation are starving to death and international hostilities are increasing and increasing due to lack of communication.

Explain three types of protectionism that a government might adopt in the context of international trade

Protectionism: Protectionism occurs when countries adopt policies to protect their domestic industries from foreign competition. The main protectionist policies are tariffs, quotas, and subsidy.

•       Tariff

Tariffs are taxes on goods imported into a country. They are often used by governments trying to reduce the level of imports into a country. The imposition of tariff upon the product indicates that the price will rise from Sw to Sw + tariff. Imports will fall from Q1Q2 to Q3Q4 and domestic production will increase from Q1 to Q2.

ex)Mexico imposes tariffs on US apples

•       Quota

Quota is a limit on the quantity of goods that can be imported into a country. Results in loss to domestic consumers, gain for domestic producers and a windfall profit to some overseas suppliers. No direct financial cost to government but will result in hostility from trading partners.

ex) Mackerel quota in Iceland

•       Subsidy

A subsidy is a payment made to firms or consumers designed to encourage an increase in output.  A subsidy will shift the supply curve to the right and therefore lower the equilibrium price in a market. The domestic supply curve shifts downwards from Sdomestic to Sdomestic + subsidy. The price to consumers remains the same, but imports fall from Q1Q2 to Q3Q2 and domestic production increases from Q1 to Q3.

ex) UK’s subsidy on electric cars

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Inspiration from Economics

While I was working on my Econ Portfolio, I realized that I have been influenced by studying Economics in different ways.

As an art student, I tend to find inspirations from various sources here and there from news, magazines, exhibitions. However, I never knew that Economics could influence me in doing my art work. After hearing comments from interviewers from the National Portfolio Day held in New York, I was trying to create another piece regarding my Korean background. Then I related my thoughts to Protectionism, which we even had a debate session in class. I thought that I could create a piece demonstrating Korea’s trade with other countries. After such brainstorming, I could finish a piece illustrating Korea’s acceptance of foreign cultures and protection of its traditional culture by using Korean traditional paper and pieces of American goods at the same time!

In the art schools I am applying, they mostly focus on art but I think it is also very important to study other areas as well to expand my view to be more creative and imaginative in produce my own original art works. I think I have made a progress just by collaborating my knowledge of very different fields together.