Can you further develop this problem and solution into a one page essay with references? 2. The following argument is made by the Japanese government to protect its rice market. A) Please identify a trade theory in their argument. B) How do you counter argue against their argument? Do you find any weaknesses in their argument? (1 page max.; 15 pt) ?If the entire 2001 Californian crop had been exported to Japan, the value would be slightly more than $500 million. Would either volume of rice exports obliterate (wipe out) the U.S. trade deficit or even significantly redress the Japan-U.S. trade imbalance, which has recently risen to more than $60 billion? Also bear in mind that Japan faces a serious labor shortage and the young farmers who abandon rice production might go to factories to manufacture more automobiles and high-tech products for export to American and other overseas markets, which would more likely expand the Japan-U.S. trade imbalance than diminish it.? Again, use what you have learned from international trade theory in answering this question. the above raises two issues that pertain to the short run and long run. In short run, it seems that US rice exports could correct the trade deficit. This would have negative effects on Japan?s agriculture sector as it would be hurt by cheaper imports. The displacement of labor would be troublesome and painful during the transition to some other sector like cars. Thus, the Japanese govt may have requested voluntary export restrictions to US in order to protect Japanese agriculture sector. Japan may not want to depend on imports for a major food item like rice. Local content requirements may be imposed for same reasons. The article does not mention if such instruments of trade policy were used. In the longrun such exports will harm Indo Japan trade relations. Japan enjoys comparative advantage in car production. Its exports have the capacity to wipe out US car industry. So it is in US interests to limit their exports of rice in order to protect domestic car industry. Both nations need to look at the long run and maintain a healthy balance of exports and imports that can support domestic industry to a resonable level, despite competitive advantages dictating otherwise.
Paper#8959 | Written in 18-Jul-2015Price : $25