Description
Promoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade.
Consider the following:
- Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied.
- The term “trade deficits” is a misnomer. Every country’s trade is always in balance.
- Trade deficits do not mean the US no longer produces anything to export. The US is the world’s second largest manufacturer and the world’s second largest exporter of manufactured goods.
- Trade deficits reflect a strong economy. Trade deficits rise during economic expansions and fall during economic contractions. Unemployment falls as trade deficits rise and rises as trade deficits fall.
- Imports and exports are complements, not competitors. Both are necessary and both contribute to economic growth.
- Roughly one-third of all US imports and exports is trade between US multinational companies and their overseas subsidiaries.
- Foreign-owned companies operating in the US number in the thousands and provide directly or indirectly jobs for more than 13 million US workers (roughly, 10% of the US workforce).
- US trade deficit in goods in 2018 (as a % of GDP) was the same as it was 5, 10 and 15 years earlier.
- The rise in US goods trade deficit with China has not increased the US total goods trade deficit. It has been offset by reduced goods imports from other trading partners.
- There is a strong correlation between the rise in world trade and:
- The rise in world GDP
- The dramatic fall in the world’s extreme poverty rate
- The rise in world life expectancy
- For every US manufacturing job lost to trade between 2000 and 2010, seven US jobs were lost to domestic productivity improvements. Those seven jobs cannot be brought back from overseas because they never left the US.
Write a 700- to 1,050-word evaluation of credible economists’ unbiased opinions on the benefits, costs, and results of current US trade and tariff policies. Complete the following in your evaluation:
- Evaluate how US trade policy changes in the last 2 years affect global trade activities by multinational corporations.
- Discuss credible economists’ opinions on the long-term effects of trade and tariff policies changes in the last 2 years.
- Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.
Cite at least 2 academically credible sources.
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
US Trade and Tariff Policies - Outline
Thesis Statement: In this sense, there have been various changes on existing trade agreements,
especially during the Trump administration, where the U.S. president imposed different tariffs
and sanctions upon Chinese imports while threatening to undertake similar measures against
other countries.
I.
Introduction
A. Countries' participation in international trading activities seeks to ensure the
increment of goods accessible by domestic consumers, decreased costs of the
good because of competition, and enables the supply of surplus by domestic
industries
B. The management of trade agreements by renowned international institutions
like NAFTA and WTO has been failing to rebalance existing regulations
meant to benefit all global workers and organizations
II.
U.S. Policy Changes & Impacts on Global Trade
A. The advocacy by the Trump administration for trade protectionism resulted in
the imposition of various tariffs on Mexico, Canada, China, and other U.S.
trading partners like the E.U
B. The arguments put forth by most economists indicate that with free trade and
limited tariffs, most global economies are considerably able to increase their
output levels and income.
III.
Long Term Effects of the Trade Tariffs
A. The existing historical data suggest that tariffs raise prices and reduce
available product quantities for both U.S. consumers and businesses, hence
reciprocating to lowered income, reduction of employment, and decreased
economic output.
B. The tariff changes would impact U.S. production output because of the
increased costs of acquiring materials and parts.
C. Most nations that the U.S. has implemented tariffs against have similarly putup strategic measures to mitigate economic loss, which is thought to be
inclusive of increased prices on raw materials needed by U.S.-based
production companies.
IV.
Impact of Trade Policies on Employers
A. Most of the global multinational enterprises operating from the U.S. were
significantly affected by the ...
