Protectionism and Trading Blocs

Protectionism:

Understand protectionism as a government policy aimed at restricting imports to protect domestic businesses.
Identify tariffs, quotas, and subsidies as key forms of protectionist measures.
Discuss the primary arguments for protectionism such as protecting infant industries, safeguarding employment, and preserving national security.
Critically view the negative impacts of protectionism including limited competition, possibility of trade wars, and low consumer welfare.
Recognize that protectionism influences global trade and leads to decreased levels of globalisation.

Trading Blocs:

Recognize a trading bloc as a type of intergovernmental agreement where barriers to trade (tariffs and others) are reduced or eliminated for the participating states.
Identify various types of trading blocs including free trade areas, customs unions, and common markets.
Understand the benefits of trading blocs: improved market access, increased competition, better economies of scale, and enhanced political cooperation.
Note the drawbacks and challenges of trading blocs: it can divert rather than create trade, conflicts between members, and issues related to sovereignty and national autonomy.
Appreciate that trading blocs alter global trade patterns and can foster regionalization over globalisation.

In-depth Studies:

Explore case studies of protectionist policies like US-China trade wars.
Examine trading bloc examples like the European Union (EU), North American Free Trade Agreement (NAFTA), and Association of Southeast Asian Nations (ASEAN).
Use these examples to understand how protectionism and trading blocs can alter business decisions, strategy, and overall operations.

Revision Exercise Questions:

Explain how protectionism could impact a business.
How does participating in a trading bloc benefit an enterprise?
Discuss the potential challenges that a firm could face in trading blocs.
Critically analyse the impact of the US-China trade wars on their economies.
Evaluate the advantages and disadvantages of the EU or ASEAN to its member countries.

By understanding these concepts regarding protectionism and trading blocs, you can gain a thorough understanding of how they influence globalisation and the world business environment. It’s important to add depth to your answers by applying this knowledge to real-world examples and case studies. Always remember to critically analyse and evaluate in your answers, which will reflect a higher level of understanding.