International Trade: U.S. and India

http://www.usnews.com/opinion/articles/2013/09/27/indias-economic-policies-hurt-its-trade-potential-with-the-us

This article discusses a relevant example of international trade. Ultimately, the trade relationship between the U.S. and India had been limited in recent years and as a result the level of trade between the two countries hasn’t met the expectations set between Obama and Prime Minister Manmohan Singh in 2009. The main factors that have impeded business are due to recent actions taken by the Indian government, including compulsory licensing and tarrifs.

1 Comment »

  1. Nicky Tynan Said,

    November 19, 2014 @ 2:29 pm

    This article connects well with our discussion of international trade. Some of the issues go beyond those covered in class (such as compulsory licensing and local content requirements) but the discussion of tariffs provides a good example of the model’s relevance. The article highlights the deadweight loss from trades between India and the US that do not take place as a result of the tariffs.

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