Part II: Answer
one
of the following 2 essay questions
1.
“Trade wars are good and easy to win”, former President Trump famously tweeted in March 2018. He chastised Japan, Germany and Mexico, along with China, as countries “where we are getting absolutely crushed on trade” and proceeded to levy hefty, double-digit tariffs on a number of the United States’ trade partners. He began with large tariffs on steel and aluminium and moved on from there.
What is your opinion on such policies measures? Should any country impose tariffs, quotas and/or other non-tariff barriers? Are such restraints on trade a good policy response to trade deficits or the loss of employment? Why or why not from a welfare perspective?
OR
2.
“When the WTO was created in 1995 to write the rule book for international trade and to referee deputes between countries … Its decisions had teeth. Faith in free markets was at a record high”.
“But …” domestic laws and programs that got in the way of “free trade” were swatted aside like cobwebs …. as if international commence were more important than climate change or workers’ rights.”
Soon, the world will have “a historic opportunity to change the direction of international trade rules …”
As a trade policy advisor, to the new administration that will be elected in November 2024, would you suggest the government work to reinstate the WTO’s central role in pushing for free trade and its concomitants or not? Explain your reasoning.
option: Can you please provide a solution for the first essay ? This is for my international finance and economic class