International Trade and Tariff Imported Ones Essay

Submitted By stefanie6801
Words: 329
Pages: 2

Response to the section (Fallacy 1)

In the section of this article, the author focuses on a fallacy that rich-country protection against exports is higher than poor-country protection(Bhagwati, 2002). Most politicians in poor countries claim that the system of trade barriers is rather unfair to their countries since much higher trade barriers are erected by rich countries they think. However, the facts turns out to be the contrary of their point. Firstly, poor countries have higher protection than the rich ones due to the really higher tariff barriers, but the author also states that not all developing countries are equally protectionist such as Singapore,which has been free-trading economy. Secondly, much of the protection against developing country exporting is mainly applied to themselves. In addition, the author suggests that the poor countries started more anti-dumping actions than rich countries in past years. In conclusion, trade barriers is not asymmetrically stacked against poor countries any more.

My response to this section is to largely agree with the author. Regarding to the first point, for example, the Chinese government imposes fairly high trade barrier on foreign cars in order to protect domestic cars by weakening imported cars’ competitiveness in local market.To be specific, the more tariff imported ones are imposed on, the higher their price will be, which leads to a result that the price of imported cars in China is even twice of its original price