discuss the political economy of international trade policy.Analyze the theoretical and the practical issues of political economy of international trade policy.Use MUST use two countries that would fit (use Brazil, and you can choose the other one, but it has to be 2 countries ones is Brazil and you have to choose the other one).Use the 5 statements as a guide:1.articulate arguments for free trade that go beyond the conventional gains from trade;2.Evaluate national welfare arguments against free trade;3.Relate the theory and evidence behind "political economy" views of trade policy’4.Explain how international negotiations and agreements have promoted world trade;5.Discuss the special issues raised by preferential trade agreements.INTRODUCTION:(1 PAGE, this assignment analyzes the political economy of international trade policy),definitions of international trade;definition of political economy of international trade policy.BODY:The case for free trade;what are the benefits of free trade?,talk about the Efficiency Case for Free Trade(3-4pages under free trade).Next the cases against Free Trade;(2-4pages under the cases against free trade, using many articles that the writer needs to search for),how does dumping effect free trade?,how does Tariff affect free trade?NEXT discuss the 5 issues that affect free trade:1.An export tax(a negative export subsidy)that completely prohibits exports leaves a country worse off,but an export tax rate may exist that maximizes national welfare through the terms of trade;2.An export subsidy lowers the terms of trade for a large country,an export tax raises the terms of trade for a large country;3.An export tax may raise the price of exports in the world market,increasing the terms of trade;4.For some countries like the U.S. an import tariff or and export tax could improve national welfare at the expense of other countries;5.But this argument ignores the likelihood that other countries may retaliate against large countries by enacting their own trade restrictions. ALSO talk about the types of market failure; mention the Domestic Market Failure Argument for a Tariff(write 1-2pages)In addition mention and talk about Economists Supporting Free Trade counter(discuss further with up to 2 pages if needed)NEXT analyse the theoretical and the practical issues of political economy of international trade policy.NEXT,talk about Political Models of Trade Policy(how is trade policy determined?;Models that address this question;Median voter theorem; and Collective action),A model of trade policy that combines aspects of collective action and the median voter theorem.NEXT,talk about Median Voter Theorem;Suppose that this ideological spectrum is defined only by a tariff trade policy.And suppose that voters an be ranked according to whether they desire high or low tariff rates(discuss a bit further 2-3pages under this theory)NEXT, talk about Collective Action(use examples and write 2-3pages under collective action theories or policies)In addition analysis of government policies on trade(2-3pages use articles and journals current ones references)NEXT,talk about A Model of Trade Policy, and talk about Agriculture, and Clothing(textiles(fabrication of cloth)and apparel(assembly of cloth into clothing))(discuss models of trade policies by writing further on the above issues up to 3 pages.NEXT,talk about International Negotiations of Trade Policy; mention The General Agreement of Tariff and trade, as well as mention the World Trade Organizations role(discuss this heading up to 3pages using various sources such as MANY books, journals, articles, and other information)NEXT, talk about The World Trade Organization:The WTO negotiations addresses trade restrictions in at least 3 ways:1.Reduction of tariff rates through multilateral negotiations;2.Binding: a tariff is "bound"by having the imposing country agree not to raise it in the future;3.Prevention of non-tariff barriers:quotas and export subsidies are changed to tariffs because the costs of tariff protection are apparent.NEXT,talk about The GATT/WTO multilateral negotiations, ratified in 1994-5.CONCLUSION just rephrase what you wrote and tie everything nicely together(draw conclusion from the paper-summary the work up to 2 pages)
