For the first part of Milestone Two, you will analyze in detail the trade barriers in your selected international market that impact the industry you have
selected. The second part of the assignment is supported by the theory you have described in the trade barriers section. You will have to recalculate the impact
on your industry based on new numbers you have chosen. For example, if a tariff is currently 10%, you will adjust it to 15% and 5% and recalculate the impacts.
Use specific examples.
III. Trade Barriers: Describe the country’s specific trade barriers geared toward foreign MNCs entering the market.
A. Define trade barriers in your specific international market. Consider drawing from multiple sources in your definition.
B. Determine the implications of the trade barriers on your company. Do these barriers hinder your company’s business? Justify your response.
C. Determine the implications of the trade barriers on your industry. Do these barriers hinder the industry within the specific international market?
Justify your response.
D. Determine the implications of the trade barriers on consumers. Do these barriers hinder the consumer’s purchasing power within the specific
international market? Justify your response.
IV. Recalculating Parameters: Select the previously identified trade barriers and change their parameters for your selected industry, making appropriate
economic calculations and representing the changes in charts.
A. Calculate the effect of the change of a tariff on your particular industry. Illustrate the change visually in a chart.
B. Calculate the effect of the change of a quota on your particular industry. Illustrate the change visually in a chart.
C. Calculate the effect of the change of a government subsidy on the overall GDP. Illustrate the change visually in a chart.
Guidelines for Submission: Milestone Two must be submitted as a 2–3 page (not including title and reference pages) Microsoft Word document with double
spacing, 12-point Times New Roman font, and one-inch margins. Include charts in an appendix. Included should be at least three scholarly references. All
references should be cited in APA format.
Reading and Resources
Textbook: Global Trade Policy: Questions and Answers, Chapter 8
This particular chapter summarizes and compares the effects of the policies discussed in the previous chapters, including tariffs, export subsidies, import quotas, voluntary export restraints (VERs), and bans.
PDF: Industrial Policy for the Twenty-First Century
This paper focuses on policies for economic restructuring. It develops a framework for conducting economic restructuring policies that maximize their potential to contribute to economic growth. The paper directly describes and compares trade policies.
Library Article: Preventing Protectionism: International institutions and Trade Policy
This article examines the role of international institutions in preventing the rise of protectionism. It analyzes states’ choices in trade policy during the recent global economic crisis, a situation likely to exacerbate uncertainty in the conduct of commercial relations and to push countries toward “beggar-thy-neighbor” trade policies. This paper directly describes and compares trade policies.