IR 292, March 15 lecture
IR 292, March 15 lecture IR 292
Popular in Fundamental International Economics
Popular in INTERNATIONAL RELATIONS
This 2 page Class Notes was uploaded by Maritt Nowak on Tuesday March 15, 2016. The Class Notes belongs to IR 292 at Boston University taught by James Baldwin in Spring 2016. Since its upload, it has received 22 views. For similar materials see Fundamental International Economics in INTERNATIONAL RELATIONS at Boston University.
Reviews for IR 292, March 15 lecture
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/15/16
IR 292 March 15 2016 Chapter 8 International Trade and Labor and Environmental Standards Income and Standards post WWII formal trade barriers are removed new obstacles to economic integration laws and regulations for domestic concerns that end up limiting international commerce conflicts about standards technical standards health and safety standards labor standards environmental standards Setting standards harmonization mutual recognition or separate most RTAs amp WTO agreements combine harmonization of standards two or more countries adopt common standards mutual recognition of standards countries keep their own standards but accept the standards of other countries too separate standards you just can t agree don t accept other standards there are no general rules for what approach is most efficient or fair case by case basis each of the approaches had pros and cons harmonization leads to a larger market and more efficiency but might keep less than ideal practices in place is one country gives up a high standard to harmonize differences in labor and environmental standards have caused concerns highincome countries fear that more relaxed standards in other countries might make domestic firms 1 lower their standards to stay internationally competitive or 2 move their business to a country with standards that are easier to meet cause a race to the bottom adopting the lowest standards to attract more firms NOT arguments about protectionism about human rights and moral standards and obligations Labor Standards labor and environmental activists don t think fines are enough to stop the race to the bottom so they call for trade sanctions economists find this ineffective defining labor standards International Labor Organization ILO proposed 5 basic rights standards no forced labor freedom of association workers can talk and work together right to organize and bargain collectively unionization no exploitation of child labor nondiscrimination in employment five standards are generally agreed upon but there is some ambiguity controversial possible labor standards universal minimum wage low income countries don t like this profit reductions production slowdowns unemployment work hour limits health and safety in the workplace labor standards and trade economists do not think trade barriers should be used to enforce labor standards create protectionism deadweight losses trade wars inefficiency effectiveness only large countries or coalitions of countries can use trade barriers because small countries don t have enough impact on global demand sanctions is counterproductive for better working conditions better enforcement makes producers more inclines to work in the informal economy unregulated and uninspected protectionism or genuine concern Specific Content of Labor Standards possibility of trade wars olabeHng Low Standards as a Predatory Practice low standards really don t make you more competitive or encourage investment countries can39t capture markets and attract investment little evidence that labor standards obtain comparative advantage unskilled illiterate labor force no economic development bad infrastructure education heaHh development costs cancel out savings from cheap labor
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'