1. The Regulatory Framework: Key Concepts
Have control systems to benefit
Businesses & Workers
Consumers
Free Trade
Opportunities
& Threats
Examples:
tarrifs, subsidies, import quotas, policies,
WTO & GATT memberships, etc
PEOPLE
Governments
Have control systems to protect

2. Chapter 7 - Discussion Questions
Martin Jacques - When China Rules the World – m
Do you think that governments should consider Human Rights when granting preferential trading rights to countries? What are the for & against arguments and the concluding basis for your position?
Whose interests should be paramount concern of government trade policy – the interests of producers (businesses and their employees) or those of consumers?
Given the arguments to the new trade theory & strategic trade policy, what kind of trade policy should business be pressuring government to adopt?

3. Case Study – GFC & Protectionism
GFC Explained -
Why do you think calls for protectionism are greater during sharp economic contractions than boom periods?
Despite the sharp economic contraction during , the increase in protectionist measures was fairly modest. Why do you think this was the case?
During , many developed nations gave subsidies to their automobile producers. How might this distorted international trade? Was this a reasonable thing to do given the circumstances?
What might occur if renewed economic slowdown triggered a wave of protectionist measures around the world? Would protectionism protect jobs, or would it make things worse?
The volume of world trade rebounded sharply in 2010 on the back of a fairly modest growth rate in the world economy. What does this tell you about the nature of international production in today’s global economy? What does this tell you about the vulnerability of the world economy to any future trade wars?
In your own time - 97% Owned – Economic Truth Documentary -