Yeomin Yoon

A Close Look at the U.S. Steel Industry: Protective Tariffs and Their Effect on the Economies of East Asia

The U.S. steel industry has a long history of being protected, first when it was an infant industry in 1791 and later as it became a mature industry and needed breathing room to allow it to restructure so that it could compete against more efficient foreign producers. In recent years the steel industry has resorted to antidumping laws to ward off foreign competition. In the first quarter of 2002, President Bush imposed tariffs of up to 30 percent on foreign steel producers in many countries, including those in East Asia. This tariff, which was the result of a finding that some foreign steel companies had dumped their steel on the American market, may be the first shot in what might become a trade war. A number of countries have filed protests with the WTO seeking compensation for the tariff and some countries have already taken retaliatory measures. These recent trade actions have a ripple effect throughout the East Asian countries, including Korea, and the world. For example, if the United States market becomes closed to the steel companies in the EU, those steel companies will have to try to sell more steel within the EU at a time when Chinese, Korean and Japanese steel companies will also be trying to penetrate the EU market to make up for lost American sales. This paper will explore some of these issues, with an emphasis on the effects that steel protectionism in the United States will have on their industries and their economies. A different version of this paper was first published in 2002 and was reprinted in 2009. The present version includes a bibliography on trade, including links to more than 100 studies on trade.

Antidumping Laws Should Be Consigned to the History Books

Antidumping laws have existed in some form since the early twentieth century. Ostensibly aimed at protecting domestic producers from unfair trade practices, they have frequently been used as weapons of protectionism even when dumping has not occurred. When this happens, some special interest group gains at the expense of the general public. Studies have found that antidumping laws result in a negative-sum game, since the losses exceed the gains, an outcome that violates utilitarian ethical principles. Antidumping laws also violate property and contract rights, since they prevent consenting adults from trading the property they have for the property they want. This paper begins with a review of the theory and practice of antidumping laws, then proceeds to apply ethical principles to determine whether individuals who launch antidumping investigations are acting ethically and concludes that President Barack Obama “needs to be bold on trade” by starting out with correcting the popular view that “dumping” is bad and those who dump should be penalized. Frederic Bastiat pointed out the fallacy of this view in 1845, yet the view is not only still with many American politicians but widely believed to be true among U.S. domestic manufacturers. President Obama should proclaim the following: In a free enterprise economic system, domestic producers have no inherent claim on the funds of consumers. The only ethical way of obtaining consumer funds is through voluntary trade. Using the force of government to obtain the funds (by prohibiting foreign suppliers from competing) puts domestic producers in the role of the aggressor, and in fact makes consumers the real victims. That is exactly what happens when a domestic producer appeals to the government to request an anti-dumping investigation against some foreign producer that is merely taking away business. Therefore, all anti-dumping laws and policies should be abrogated to promote freer trade. A bibliography containing links to more than 100 trade articles is also included.

What's Wrong with America's Antidumping Policy?

Antidumping actions have been an increasingly popular means of dealing with alleged unfair international trade practices in the last few decades. In the 1970s, only the United States and a few other countries used antidumping laws to prevent or punish foreign producers for alleged inappropriate trade policies, but these laws have become much more popular and widespread since the creation of the World Trade Organization. This paper discusses some of the most serious problems with the current U.S. antidumping policy. A bibliography with links to more than 100 articles on trade is also included.

Attitudes Toward Tax Evasion in Korea: A Study in Public Finance

This study summarizes the theoretical and empirical literature on the ethics of tax evasion and then proceeds to examine the opinions of 1199 South Koreans on the issue. The study found that, although South Koreans are strongly opposed to tax evasion in general, their opposition is less than absolute in many cases. An examination of some demographic variables highlighted some of the differences. Men and women were equally opposed to tax evasion. Older people were more strongly opposed to tax evasion than younger people. The two groups most opposed to tax evasion were the self-employed and the housewives, and the least opposed group was the unemployed. Widows were most opposed to tax evasion, followed by married and single individuals. Divorced individuals were least opposed. The upper class was significantly less opposed to tax evasion than the other classes. Those with the strongest opposition to tax evasion are not very happy, while least opposed were not at all happy. The two unhappy groups were at the far ends of the spectrum, while the two happy groups were in the middle, making for a curvilinear relationship. Religion and confidence in government were not significant variables. Attitude toward tax evasion has changed since the first survey was conducted in 1982, but the change is not linear.

A Look at Labor Standards and Neglected Human Rights Issues

Various groups have been demanding that discussions of labor standards be included in all future trade negotiations. The press is full of stories of alleged exploitation of child labor and other employment abuses in developing countries and human rights groups have demanded that something be done about it. However, the press and the academic literature have neglected various property, contract and association rights issues relating to labor standards in lesser developed countries. This paper attempts to remedy that deficiency and to start a discussion of some issues that have been overlooked or inadequately discussed. The tools of analysis will include both utilitarian ethics and rights-based ethics. A bibliography with links to more than 100 papers on trade is also included.

A Look at Economic Sanctions from a Business Perspective

Numerous articles have been written on economic sanctions over the past few decades. Most papers take an overall approach, focusing on the utilities and dis-utilities of sanctions in general or on a specific sanction. While this paper also looks at general aspects of sanctions, it goes beyond the usual focus and also examines some particular aspects of economic sanctions that are often overlooked in both the economic and ethical literature. Rather than limiting itself to utilitarian aspects of sanction policy, the paper also applies other ethical approaches to evaluate whether sanctions pass the ethical test. The possibility of compensation for losses caused by the imposition of sanctions is also discussed. A bibliography with links to more than 100 trade articles is also included.

Some Economic and Ethical Problems with Trade Sanctions

Numerous articles have been written on economic sanctions over the past few decades. Most papers take an overall approach, focusing on the utilities and dis-utilities of sanctions in general or on a specific sanction. While this paper also looks at general aspects of sanctions, it goes beyond the usual focus and also examines some particular aspects of economic sanctions that are often overlooked in both the economic and ethical literature. Rather than limiting itself to utilitarian aspects of sanction policy, the paper also applies other ethical approaches to evaluate whether sanctions pass the ethical test. The possibility of compensation for losses caused by the imposition of sanctions is also discussed.

Is the Asian Financial Crisis 'A Gratuitous Unnecessary Tragedy'?

In this paper the authors ask whether the Asian financial crisis was unnecessary. They propose rethinking the Asian financial crisis through the relatively new capital account crisis paradigm, originally proposed by Masaru Yoshitomi. The authors argue that this paradigm provides a much more appropriate perspective to frame the questions regarding the causes, cures and preventive measures raised by the Asian financial crisis.