Henry George Institute
Applied Economics: Globalization and Trade
Lesson 7: Today's Issues in International Trade

Please read "After Protection or Free Trade" and  "Free Trade & Multinationals"

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1. If trade surpluses do not increase production, then why do so many nations seek them?   (After PFT) 



2. Why has the United States, unlike so many other nations, been willing to accept a trade deficit for many years?   (After PFT) 



3. Why has China pursued a deliberate policy to keep its currency undervalued?   (After PFT) 



4. In addition to tariff reductions, what issues are now addressed in international trade negotiations?   (After PFT) 



5. Why are international trade agreements seen as eroding national sovereignty?
	
	
	
6. What is the most basic and essential element of national sovereignty?   (After PFT) 



7. What penalty is imposed on a nation that breaks the trade rules enforced by the WTO?   (After PFT) 



8. What policy could a nation adopt to ease the burden of that penalty?   (After PFT) 



9. What are some of the problems in today’s economy that are blamed on “free trade”?   (Trade, Development & Sustainability) 



10. What special privilege is granted to corporations? Why is this so useful to them? 



11. What are some factors that can make a large corporation less efficient and profitable?   



12. Historically, which has come first, higher wages, or higher worker productivity? Is this changing today?   



13. What are some of the non-labor costs that businesses seek to avoid by moving operations to other countries?