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LET'S PRACTICE
6. Give the Glucosian people five good reasons why it’s in their best interest to embrace free trade. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 7. When, if ever, might there be an exception to the free trade rules allowing the imposition of protectionist strategies? List all: _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. The Glucosian government claims that it is within its rights to protect its fledgling health care industry by imposing the “opportunity fee.” What’s your response? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 9. Numerous Norwegian health care companies have had no problem marketing their products in Glucosia. In fact, the Glucosian government has gone above and beyond the WTO multilateral agreement and offered better trade terms to the Norwegians. Is this permissible? If so what are better trade terms called? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. Hnnh believes it is being treated unfairly in Glucosia and wants to file a complaint against the Glucosian government. Who do they call? a. Ghostbusters b. the President of the United States nurturing new/startup industries in developing nations national security health/welfare of the public retaliation for actions of the trading partner Yes, partners may offer preferential treatment. If there is a Glucosia-Norway bilateral FTA, Glucosia may offer preferential treatment. It may not fall below the WTO multilateral agreement trade terms/levels. The opportunity fee is really a tariff. If Glucosia were a developing nation it might be able to impose the fee to protect a fledgling industry. Glucosia is not a developing nation . It is, in fact, a wealthy nation . It probably wouldn't get away with claiming this exemption . • better, cheaper goods for the consumer from increased competition • economic growth of the trading nations • increased innovation • improved employment and higher wages • reduced hostilities between successful trading partners PRODUCT PREVIEW
c. the United States Trade Representative (USTA) d. the International Treaty Administration (ITA)
Lesson 17 | Breaking Down Barriers 324
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