Introduction to trade policies (video)
Watch the video International trade: introduction to trade policies and then answer the questions below. You can watch this in the window below, or follow the previous link to open the video in a new web window.
- Define the following terms:
- Trade policy
- Balance of payments
- Explain how South Africa's trade policies have changed in the last 20 years.
- Analyse the impact of the move from subsidising the fruit industry to free trade on the South African fruit industry.
- Evaluate whether subsidies awarded to European farmers make them, as the video suggests, more competitive or more dependent.
- In the interview with Johann Baard of Cape Clothing Manufacturers he suggests that "South African clothing manufacturers can never, and never will, be competitive against clothing manufacturers in China." Discuss the extent to which this offers a justification for trade protection for South African clothing manufacturers.
- Explain the arguments offered in favour of tariffs.