MGCR 382 Chapter Notes - Chapter 2: Planned Economy, Overseas Private Investment Corporation, Predatory Pricing

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Nicholas Matziorinis

Document Summary

Two principal issues have shaped the debate on appropriate trade policies. Also that govt should ensure level playing field" often used to justify policies. Industry-level arguments (addresses the need of individual industries) that restrict foreign competition. National defence argument: used as a reason to support governmental protection of specific industries. A country must be self-sufficient in critical raw materials, machinery, and technology or else be vulnerable to foreign threats. Appeals to the general public (concerned that its country will be pushed around by other countries that control critical resources) Infant industry argument: imposition of tariffs on numerous imported manufactured goods to give u. s. firms temporary protection from foreign competition until they could fully establish themselves. First secretary of the treasury feared that the young usa"s manufacturers would not survive their infancy and adolescence b/c of fierce competition from more mature european firms.