Presentation On Case Study The Global Financial Crisis & Protectionism

Presentation OnCase Study

The Global Financial Crisis & ProtectionismPresented By

Md. Hamed Hasan Riyadh ( 122 0852 660)

Ahmed Shafquat Noor (1220865060)

Introduction Between 1986 to 2007 : Increased in World Trade

Introduction Between 1986 to 2007 : Reduced Trade Barriers

Introduction During 2008 to 2009 : Declining the volume of world Trade 2 % to 12 % Countries Adopted Protectionism policies Revival of Economy during 2010

Why do you thing calls for protectionism are greater during sharp economic contractions than during boom period?

Learning from history: The protectionist measures from 1930 leading to Great DepressionDevelopment of trade and economic theories and higher volume of international tradeWTO treaties limiting the ability of the nation to take protectionist measures

Despite the sharp economic contraction during 2008-2009, the increase in protectionist measures was fairly modest. Why do you think this was the case?During 2008-2009 many developed nations gave subsidies to their automobile producers. How might this have distorted international trade? Distortion from subsidies

Compete against low cost foreign imports by lowering the cost

Gain export markets and earn foreign currency

Was this a reasonable thing to do given the circumstances?ReasonabilityPoliticalProtect JobsProtecting important industriesEconomicProtecting infant industriesStrategic trade policy

What might occur if a renewed economic slowdown triggered a wave of protectionist measures around the world? Would protectionism actually protect job? Or would it make things worse

The term protectionism refers to anymeasure that has the effect of reducing the quantity of imported goods or services.

Commercial policy: Government policy that influences international trade flowsWhat might occur if a renewed economic slowdown triggered a wave of protectionist measures around the world? Would protectionism actually protect job? Or would it make things worse Increase in Trade BarriersCustomers would be worst sufferers Increase in Subsidiaries Protecting Job???Means of rebounded of Economy in 2010 & Vulnerability of World economy to any Future trade wars? Adaptation of Free Trade policies Increasing the number of Treaties Role of Trade organizations ( WTO, OPEC)Vulnerability of World economy to any Future trade wars?

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