Individual weekly contribution to Seminar Topics 3 discussion and questions

Read the short case '' Sugar subsidies drive candy makers abroad”.

It is located on p. 221 in your textbook or you can access it from the e-Library resources provided for this course on the learnonline site.   

Answer the questions below. Do NOT answer the questions at the end of case in the textbook.

Attach a word document for each post with the following format:

FAMILYname-Firstname-week#.doc

"There are winners and losers in terms of benefits from subsidies to US sugar producers, including local and international stakeholders. The question is whether the benefits of US government support to the US sugar industry outweigh the losses. What would be the impact locally and globally if the US government removed all support for US sugar producers? Incredibly, government support programs for sugar producers were introduced in the 1930s, yet they still remain today, long since the original rationale disappeared. It says a lot about the political decisions relating to international trade". 

In light of this statement discuss the following questions:

1. Which of the International Trade Theories best explains the history behind the US government subsidies for the sugar industry? What are some of the limitations of the theory you have selected?

2. If you had the power to make changes to the US government support to the sugar industry, what would you do and why? What theory do you draw upon to explain your decision?  Why?

(300-600 words)