APA Format (4-6 pages, not including cover and reference pages)
Chapters 6 & 7 of Hill, C. W. (2016), Global Business Today (10th ed.). New York: McGraw Hill Irwin.
Take the Porter Diamond in the text and the various theories of trade as your reference and construct your personal trade theory and strategy for the USA. Make sure you include a discussion of environmental issues and the role of the WTO.
Assignment Preparation Topics:
1. The Theory of Comparative Advantage that includes the Heckscher â€“Ohlin Theory on Factor Endowments as the basis of Comparative Advantage and Leontiefâ€™s paradox and Samuelsonâ€™s Critique .
2. The New Trade Theory including the Product Life Cycle Theory.
3. Main tools for protectionism: tariffs, quotas and non-tariff barriers. Effective Rate of Protection.
4. Self -interest approach to trade policy, the social objectives approach, the political science approach and the Baldwin approach.
5. Main issues relating to trade and the environment. In particular the Kuznets curve and the top challenges in including environmental issues in trade talks.
6. Porterâ€™s Diamond theory of National Competitive Advantage
7. Implication of trade theory and policy for managers?
8. The website www.wto.org for its role and function in world trade.
9. The website of the United State Representative, www.ustr.gov and the official position on the WTO and the major priorities of the Presidentâ€™s Trade Policy Agenda.
10. The website critical of the WTO www.iatp.org (based here in Dinkytown) â€“ former Executive Director is our new Secretary of State for MN
11. The website of the EU http://europa.eu/index_en.htm
12. The main arguments for making trade fair and reforming the WTO as found in Oxfamâ€™s site http://www.maketradefair.com/en/index.htm
13. The main arguments in the text page 233 why Americaâ€™s tariff system is toughest on the poor.