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International Trade and Economics

1. Global Governance
a. What does protection of species such as dolphins and turtles have to do with international trade?
b. How has the WTO tried to protect threatened species? Have those efforts been successful?

2. Central Planning and Market Economies
a. How does central planning of an economy differ from market economies?
b. What has been the result of the transition from a centrally planned economy to a market economy in countries that were part of the Soviet Union?

3. Which of the following would do the most practically to address issues of global warning? Why?
a. Eliminate subsidies for energy use.
b. Restore the rainforests.
c. Place restrictive taxes on carbon dioxide emissions.
d. Exhaustion of the world's fossil fuels.

4. What evidence is there that term of trade work against primary producers in the long run?

Pugel, T.A. (2009). International economics (14th ed.). New York, NY: McGraw-Hill.

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1. Global Governance

a. Dolphins, turtles and International Trade

The international trade has increased to a large extent in the past two decades. This has created a setback for many of the endangered species such as dolphins and turtles. Dolphins in Eastern Tropical Pacific Ocean found to be in danger for the first time in 1960s, when a new method emerged for catching tuna. The method was purse-seine fishing, where the speedboats and helicopters flocked dolphins and tuna in some areas. They encircle the area of dolphins and tuna with their nets. Whenever the nets tightened, the dolphins got trap in them and die. Nearly, six million dolphins have died since 1960. Sea turtles are another endangered species who have suffered a lot due to the international trade. They get trapped in the nets thrown by the sailors in Caribbean and Latin American sea waters and killed (Pugel, 2009).

b. WTO's efforts to protect endangered species

WTO promotes free trade for its member countries. It takes care of environmental policies, but is watchful against them as primarily, it has to focus on the business interests of its members. When US restricted trade with its trading partners from Caribbean Islands and Latin America, and extended it further to few Asian countries on environmental grounds, WTO had to intervene.

WTO cannot ask any country to change its policies. It stated that the US policies were against the international rules of trade as US used to discriminate among its trading partners. It said that all the member countries should abide by the minimum environmental standards and all the steps should be taken only after ...

Solution Summary

The response addresses the queries posted in 952 words with references.