Question

E. In the real world, complete specialization does not happen and trade barriers do exist. Usually this is in the form of tariffs and other barriers to reduce imports. Several arguments are used to explain why trade barriers are needed including protecting domestic jobs and national security. Traditionally, the national security argument has been used very selectively for specific industries like. However, the recent Covid-19 crisis has put in sharp focus the issue of fragile supply chains that span over the globe. With several countries (including the US) putting restrictions on exports of vital supplies like face masks, hand sanitizers, food products, CO2 etc. for national security reasons, explain what changes in trade policy might take place over the next few years because of these complications. Discuss if and why this is now justified. (3 points) [Hint: Write a short essay on this topic (between 100-150 words). You can use the small country trade model graph to help explain your position.]

Answer 1

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Question:

Answer:

Introduction:

We all know this time world is facing the problem of COVID-19 crisis. Its affect the global economic, social and political activities. World is facing a new recession. GDP, consumer confidence, employment rate, income level of the countries are falling sharply. People are losing their job or facing the problem of pay cut. People are dying and getting corona positive. million of people have lost their lives and more than 10 million of people are Corona positive. This is the tuff and very complicated situation for the world. World did not face this type of global pandemic situation earlier.

Trade is a very popular activities for the world and its paly important role in the economy. There are several Organizations (global/regional) are working for promoting and implementing the trade policy smoothly. The most important global organization is WTO. Every member country follow the international trade policy with its domestic policy. Internation policy is design for the common mutual benefits of the member countries and the objective of this policy is to smoothly run the internation trade with minimum restriction and maximum transparency. Other side domestic trade policy is depends upon the current situation of economy and trade deficit. Every country has own economic, political and social issues so, follow domestic trade policy as per its requirement.

Current Trade Policy:

This time every country is facing a global pandemic situation that has been discussed above and we also know that nation first. All the countries are trying to protect its own economy and people from COVID-19 crisis. This time health safety is a very important concern for every nation. Country was not ready to face this pandemic situation because no one was aware about it earlier. So, countries are putting restrictions on exports of vital supplies like face masks, hand sanitizers, food products, CO2 etc. for national security reasons. Most of the countries are facing the problem of short supply of these medical equipments and medicine. Other side countries are putting restriction on import on other products and services to protect their economy also. But this time situation is little different and export restriction has replaced the import restrictions. But it fare and need and demand of situation but at the same time we are living in a global village so, country should also bear the global social responsibilities and help each others as much as possible.

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