EC1111 - International Economic Policy RHUL - Autumn 2017 Vinay P. Nundlall Seminar 2 Give short answers to Questions 1-6. The material for these questions come from Chapter 2 in the Course Reader. Prepare arguments for a discussion, or debate, for Question 8. 1. What is globalization within the context of international trade of goods and services? 2. What is trade policy and how does it work? 3. What does an import tariff do? (You can avoid talking about welfare effects) When can import tariffs be justified? 4. Emerging economies, or LDC's, can develop if rich countries import their primary products. Explain how LDC's are vulnerable to price fluctuations of their exports. 5. Why is it important to have an institution like the WTO today? 6. Identify features that cause, or are likely to facilitate international trade. 7. Consider the two tables from the Subramanian and Wei (2007) article shown in the Lecture (Table 1. "MFN Tariff Cuts by Industrial Countries", page 29 and Table 4. "Tariffs in Highly Protected Sectors in the United States and European Union, 1989 and 2001", page 31). Do you feel that trade agreements have been effective in promoting trade? 8. Is trade protectionism good or bad?