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International Trade ∙
Internasionale handel
Session ∙ Sessie 7:

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Feedback tutorial 1

Terugvoer tutoriaal 1
• https://twitter.com/i/status/1556501946609049605

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

Intervention • Inmenging

Theme 1: Session 7
Tema 1: Sessie 7

3
Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe
 Learning Objectives
What will I
learn in this Engaging with this sub-module content, you will learn
module?
to:
Understand the current economic conditions and
Wat gaan ek in the implications for economic growth and trade
prospects;√
Gain insights from International Trade Theories that
hierdie module explain why international trade matters; √
*Understand why, how and to what effect
leer?
governments intervene in international trade;
Understand the multilateral global trading system and
how it advances trade amongst countries;
Understand regional integration, its purpose,
possibilities and obstacles;
Use the insights from theory to understand how the
* today.
confluence of freer trade under the World Trade
Organisation’s Trade Facilitation Agreement, the
African Continental Free Trade Agreement and the
vandag
Fourth Industrial Revolution can propel Africa into
economic prosperity, despite many obstacles and the
Covid-19 pandemic.
Leerdoelwitte
Deur gefokus deur die inhoud van die sub-module te werk,
behoort studente:
die huidige ekonomiese toestande en hul implikasies vir
ekonomiese groei- en handelsvooruitsigte te verstaan; √
 insig te put uit Internasionale Handelsteorieë wat
verduidelik waarom handel belangrik is; √
*te verstaan waarom, hoe en met watter impak owerhede
in internasionale handel inmeng;
die multilaterale handelsregime en hoe dit internasionale
handel bevorder, verstaan;
streeksintegrasie, die rationale, doelstellings, moontlikhede
en struikelblokke daarby betrokke, te verstaan;
die insigte uit die handelsteorieë te benut om te verstaan hoe
die samevloei van vryer handel onder die
Wêrelhandelsorganisasie se Handelsfasiliteringsooreenkoms,
die Afrika Kontinentale Vryhandelsooreenkoms en die Vierde
Industriële Revolusie Afrika kan help om ekonomiese
welvaart te skep, tenspyte van verskeie hindernisse en die
Covid-19 pandemie.
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 Theme 1: Tema 1:
Trade and economic growth Handel- en ekonomiese
prospects in the time of the Covid-19 groeivooruitsigte in die era van Covid-19
Content: pandemic and global uncertainty. √ en globale onsekerheid. √

International Is this the end of International Trade

and why did it matter in the first
Beteken dit die einde van internasionale
handel en waarom was handel in die
Trade. place? √ eerste plek so belangrik? √

* What are the significant barriers to Wat is die belangrikste beperkings op

increased global trade and economic meer internasionale handel en
Inhoud: growth? ekonomiese groei?

Internasionale READER: Jafta & Semenya, PART I &

II
READER: Jafta & Semenya, PART I & II

Handel

5
Purpose:

understanding why, how and with what

impact governments intervene in trade.

Why?
Removing barriers enables trade (Part III & IV)

6
 News ∙ Nuus

Tyre prices could balloon in SA if new tariffs are

accepted, importers warn

• Penelope Mashego

Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe

From last session The effects of an import tariff on tyres

Price R

Increase in producer surplus (1)

Deadweight losses(2,4)

Government tariff revenue (3)

Pe

P
S world + tariff
w
+t
1 2 3 4
Pw S world NB: these are first round
effects
D
Longer term effects,
Q1 Q2 Q3 Q4 p.38
Q millions
“Tyre prices could balloon in SA if new tariffs are accepted,
importers warn”

https://www.news24.com/fin24/economy/tread-lightly-tyre-prices-could-balloon-in-sa-if-new-tariffs-
are-accepted-importers-warn-20220726

• A group of tyre manufacturers wants anti-dumping tariffs to be imposed on Chinese

imports.
• However, tyre importers are opposing the application.
• They say it could drive up tyre prices for taxi owners by between 38% and 41%.
To do in class. Doen in klas:
1. Draw the graph showing the impact of the tariff (see p.36)
2. Explain what the impact might be for:
• those using tyres as input (e.g. car manufacturers)
• Taxi and other transport providers
• Consumers
• Why government might impose this tariff (answer in the article)
Economic and Management Sciences | EyeNzululwazi ngoQoqosho noLawulo | Ekonomiese en Bestuurswetenskappe
 Economic arguments Ekonomiese arguments

 Bekamp werkloosheid
 Preventing unemployment  Beskerm suigeling (infant)
 Protecting infant industries industrieë
*  Strategic trade policy  Strategiese handelsbeleid
Waarom die  Political and other reasons  Politieke en ander redes
regering 

To prevent dumping
National security


Om storting te voorkom
Nasionale sekuriteit
inmeng  ‘fair trade vs free trade” 

“billike vs vrye handel”
 Government revenue Owerheidsinkome

READER, pp.30-32
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 *
Hoe meng die regering in?
(instrumente)

READER, p.33-34  Tariffs• Tariewe

 Non-tariff barriers • Nie-tariefbeperkings (NTB)

 “A Non-Tariff Barrier is any
obstacle to
international trade that is not
an import or export duty. They
may take the form of import
quotas, subsidies, customs
delays, technical barriers, or
other systems preventing or
impeding trade”.

Non-tariff Barriers
*
Nie-tarief beperkings

 Real world examples

 Werklike voorbeelde

Important question: why does it matter?

Belangrike vraag: waarom maak dit saak? 12
 Complete: Q1.13. Explain three justifications for restrictions on trade with the aid
Why do governments intervene in of real world examples. [10]
International trade?
 
How does government intervene,
i.e. what are the instruments that Q1.14. Name and describe briefly five non-tariff restrictions. [10]
they use?

* Vr.1.13. Verduidelike drie regverdigings (redes) vir beperkings op handel

met behulp van werklike voorbeelde. [10]
Voltooi:
Waarom meng owerhede in
internasionale handel in?
Vr.1.14. Noem en verduidelik kortliks vyf nie-tariefbeperkings. [10]
 
Hoe meng owerhede in, m.a.w
watter instrumente gebruik
hulle?

READER, pp.28-34 13
 NB: click on the links on p.36
NB. Make sure
that you can
to watch the videos
do Q1.15 explaining the impact of a
* tariff
NB. Maak
seker dat jy NB: Kliek op die skakel op
Vr. 1.15 kan bl.36 vir die videos wat die
doen impak van ‘n tarief verduidelik

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 Next session:
Theme 2
*
Volgende sessie:
Tema 2

READER, PART III

The African Continental Free Trade Agreement. What are the options for Africa to improve growth prospects
through increased trade

Die Afrika Kontinentale Vryhandelsooreenkoms. Wat is Afrika se opsies om groei-vooruitsigte met behulp van
internasionale handel te verbeter?

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