Government Intervention in the Steel Industry The Bush administration announced the imposition of sweeping tariffs of up to 30% on steel imports to the United States for a period of 3 years in March 2002 purportedly to save the ailing steel industry from collapsing. Predictably, the action has invited particularly harsh criticism from the U.S. trade partners that have been directly affected by the tax, i.e., the European Union, Japan, and

However, our company need likely not worry about import controls, since import regulations and controls only apply to products under monopoly control such as medication. Quota amounts are subject to annual review, but again our company is likely not going to be concerned with this since, although largely restricted to goods from developing countries, quotas are imposed only on textile goods and clothing, Exchange control is the responsibility of the Central

Tariff and Nontariff Barriers The dawn of globalization and the advancement of transport and communication technology have resulted in increased international trade. As a result, various multinational companies (MNCs) such as General Motors, Coca Cola, and Toyota have expanded their international activities. Because of the stiff competition that local producers face, various governments have embraced protectionist policies with the aim regulating international trade. For instance, the U.S. government imposed quotas on

If the quota were to be granted to a domestic resident, then the rent that would be generated would be kept within the domestic economy, and therefore it would be referred to as a 'domestic rent capture barrier'. (Non-tariff Barriers: The Reward of Curtailed Freedom) However, the fact is that though the rent remains at home, what happens is that an inevitable 'income redistribution effect' takes place. This means that

If a country has a small share of the market of a product its demands for imports has little effect worldwide, but it lowers national well-being. If Costa Rica imposed a tariff, for example, the impact would be minimal. However, if a country has a large enough share of the market for one of its imports, it can affect the world price; this is called monopsony power. If the

Additionally the allied powers recognized Japan as a sovereign nation having the right of individual and collective defense as defined by Article 51 of the Charter of the United Nations (Treaty of Peace with Japan). Additionally it was established that the allied powers occupation forces would withdraw from Japan within a 90 day period (Treaty of Peace with Japan). However the treaty does not prohibit the presence of a retention