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PRESENTATION

ON
CASE STUDY

THE GLOBAL FINANCIAL
CRISIS & PROTECTIONISM
Presented By

Md. Hamed Hasan Riyadh ( 122 0852 660)

Ahmed Shafquat Noor (1220865060)


INTRODUCTION
Between 1986 to 2007 : Increased in World Trade

INTRODUCTION
Between 1986 to 2007 : Reduced Trade Barriers



INTRODUCTION
During 2008 to 2009 : Declining the volume of world Trade
2 % to 12 %
Countries Adopted Protectionism policies
Revival of Economy during 2010




WHY DO YOU THING CALLS FOR
PROTECTIONISM ARE GREATER DURING SHARP
ECONOMIC CONTRACTIONS THAN DURING
BOOM PERIOD?



Protectionism During
the Contractions:
struggling
with structural
unemployment
stimulating the
economic growth
in the short-term
period
protecting
young
industries
Learning from history: The protectionist measures from 1930 leading to
Great Depression
Development of trade and economic theories and higher volume of
international trade
WTO treaties limiting the ability of the nation to take protectionist
measures



Despite the sharp economic contraction
during 2008-2009, the increase in
protectionist measures was fairly modest. Why
do you think this was the case?
DURING 2008-2009 MANY DEVELOPED
NATIONS GAVE SUBSIDIES TO THEIR
AUTOMOBILE PRODUCERS. HOW MIGHT THIS
HAVE DISTORTED INTERNATIONAL TRADE?
Distortion from subsidies


Compete against
low cost foreign
imports by lowering
the cost

Gain export
markets and earn
foreign currency

WAS THIS A REASONABLE THING TO DO GIVEN THE
CIRCUMSTANCES?
Reasonability
Political
Protect Jobs
Protecting important industries
Economic
Protecting infant industries
Strategic trade policy

WHAT MIGHT OCCUR IF A RENEWED ECONOMIC
SLOWDOWN TRIGGERED A WAVE OF PROTECTIONIST
MEASURES AROUND THE WORLD? WOULD
PROTECTIONISM ACTUALLY PROTECT JOB? OR
WOULD IT MAKE THINGS WORSE



The term protectionism refers to any
measure that has the effect of reducing the
quantity of imported goods or services.

Commercial policy: Government policy that influences
international trade flows
WHAT MIGHT OCCUR IF A RENEWED ECONOMIC
SLOWDOWN TRIGGERED A WAVE OF PROTECTIONIST
MEASURES AROUND THE WORLD? WOULD
PROTECTIONISM ACTUALLY PROTECT JOB? OR
WOULD IT MAKE THINGS WORSE
Increase in
Trade Barriers
Customers would
be worst sufferers
Increase in
Subsidiaries

Protecting Job???
MEANS OF REBOUNDED OF ECONOMY IN 2010 &
VULNERABILITY OF WORLD ECONOMY TO ANY
FUTURE TRADE WARS?
Adaptation of Free Trade policies
Increasing the number of Treaties
Role of Trade organizations ( WTO, OPEC)
VULNERABILITY OF WORLD ECONOMY TO
ANY FUTURE TRADE WARS?


THANK YOU