audioecon   Smart listening for students of economics

Link: http://www.npr.org/blogs/money/2009/09/podcast_1.html

Summary: Discusses potential for a trade war between the U.S. and China. The U.S imposed a tariff on Chinese tires. China threatened a tariff on chicken paws (feet).

Original Air Date: September 18, 2009

Length 19:03

Main story content begins: 3:50

Discussion of Harmonized trade schedule: 1:23 – 3:50

Discussion Prompt (1): The United States has a Harmonized Tariff Schedule, which outlines all tariffs for the US. Discuss the impacts that you think come from this system of tariffs in the U.S. You might consider impacts on producers, consumers, ease of engaging in trade, and the trade balance.

Follow-up Prompt (1): Consider the complexity in the system of international trade that the harmonized tariff represents.  Do you think the U.S. is the only country with this detailed and complex system of tariffs? How do you think this system impacts firms that want to engage in international trade?

Discussion Prompt (2): With the increasing number and complexity of multinational firms that might be headquartered in one country, with research facilities in another, manufacture in one or multiple other countries, and sales all over the world, do you think there is such a thing as domestically produced product (along the line of Made in America) that it would make sense trying to protect?

Written Assignment Prompt: Countries are using the “you pushed me first” scenario, using international trade. Surprisingly, though, tariffs were diminishing with the promotion of free trade, except for just recently. Draft an argument stating your position on free trade or the use of tariffs, and the economic rationale for that position.