Summer School 7: Trade blocks and blockages

This episode of Planet Money Summer School delves into the complexities of trade policy, specifically focusing on protectionism and its various forms, such as tariffs, quotas, and regulations. The podcast features Dean Carolyn Freund from UC San Diego, who provides expert insights and case studies on the impacts of protectionism on specific products. The first case study examines the U.S. sugar industry, highlighting how government protections lead to higher prices for consumers and unintended consequences for industries like candy manufacturing. The second case study explores the regulatory differences in car manufacturing between the U.S. and Europe, revealing how these discrepancies act as trade barriers, increasing costs and limiting consumer choice, despite the car industry's desire for harmonization. The episode concludes by defining key vocabulary words related to trade and protectionism, such as quotas and path dependence.