In Chapter 5, you saw that there are reasons to expect that landowners in Japan might oppose the import of rice from Vietnam or, for that matter, from any other country. This opposition to imports exists despite the overall gains to Japan from these imports due to a loss in landowners’ income as a result of trade. Whether for these economic reasons, or for cultural reasons, demands for protection are common. For example, Ikuo Kanno, a fourth-generation Japanese rice farmer stated: “I believe that the value of agriculture can't be measured just by an economic yardstick. Japan has been a farming country for centuries, and rice farming is embedded in the culture. It should be preserved.” Indeed, as we discussed in Chapter 5, rice farming in Japan has been supported a great deal through various stringent limits on imports.

For an international affairs professional or a trade policy analyst, knowing that factor conditions lead to the demand for import protection is not enough. These individuals are often called on to assess, both qualitatively and quantitatively, the numerous impacts of government interventions in international trade. If you pursue an international economic affairs career, it is likely that you will either be involved in making these assessments or in interpreting the assessments made by someone else. Therefore, it is important for you to understand how the assessments are made. This is the purpose of the present chapter.