Brendan Jones

Economic Policy in the Age of Globalisation

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: Trade policies: free trade and protectionism

Trade policies and the foundation of free trade Trade policy can be defined as the attitude of a countrys economic policymakers towards foreign trade. Putting it very briefly, they can take a liberal attitude, meaning that they do not raise barriers to exports and, above all, imports, or they can assume a protectionist stance, meaning that they attempt to safeguard domestic firms against foreign competition. A third position is autarky , which seeks to close the domestic economy to the rest of the world. Liberal policies consist simply in the elimination of all barriers to foreign trade. In this section we give a brief sketch of the fortunes of protectionism and free trade in the modern era and lay out the foundation of free trade; in section 15.2 we discuss protectionist instruments and in section 15.3 we examine their effects. Sections 15.4–15.8 analyse the various justifications of protectionism. Section 15.8 discusses the relationships between trade policy and industrial policies. We do not examine autarkic policies. As a trade policy alternative to free trade, protectionism has been both the subject of an extensive theoretical debate that marked the very birth of economic science and the focus of a variety of government actions over the ages. To limit ourselves to the modern era, examples of such policy measures include the Navigation Act of 1651, with which Oliver Cromwell made use of vessels of the English merchant marine mandatory for all the countrys imports and exports.

Economic Policy in the Age of Globalisation: Macroeconomic objectives and fiscal policy

The term fiscal policy refers to the government budget measures aimed primarily at changing income and employment in the short run. Since debate on fiscal policy is often obscured by improper reference to the institutions governing it, it can be helpful to first state the meaning of certain terms denoting the agents of fiscal policy. The general government sector consists of the following group of resident institutional units: (a) all units of central, state or local government; (b) all social security funds at each level of government; (c) all non-market non-profit institutions that are controlled and mainly financed by government units. The sector does not include public corporations owned by government units. However, unincorporated enterprises owned by government are included. Individual countries may be organised in such a way that some of the units indicated will be absent – e.g. states for countries that do not have a federal constitution (see Commission of the European Communities et al ., 1993). Our analysis will generally refer to the general government sector as a whole. This means that relationships within the sector (e.g. transfers from the central to local governments) will not be examined. The budget and its components Let us now provide a number of definitions.

Economic Policy in the Age of Globalisation: Public institutions in an international setting

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: Contents

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: Normative and positive theory of economic policy

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: Subject index

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: List of symbols, abbreviations and acronyms

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.

Economic Policy in the Age of Globalisation: Macroeconomic policies

In the age of globalisation, both domestic and foreign economic policies play an important role in determining firms’ strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms’ choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this book, Nicola Acocella analyses both sides of this relationship. Special emphasis is placed on current issues in policymaking on the basis of social choice principles and the normative and positive theory of economic policy, and on issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generatemany of today’s economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both microeconomics and macroeconomics.