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Unfair Protection and Valid Defens (Code: c182)

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Unfair Protection and Valid Defens
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 Read the case given below and answer the questions given at the end.

 

 

CASE STUDY – II

Unfair Protection and Valid Defens

―Mexico Widens Anti-Dumping Measure … Steel at the Core of US-Japan Trade Tensions … Competitors in other Countries Are Destroying an American Success Story … It must be Stopped‖, scream the headlines around the world. International trade theories argue that nations should open their doors to trade. Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of the World Trade organization (WTO) and smaller group of nations governments seem to be crying foul in the trade game now more than ever before.

Questions
1. WTO cannot punish individual companies for dumping and can only take actions against individual countries. Is this a wise policy? Why or why not?
2. Why is protectionism on the rise in recent years?

 



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