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INB 205 Wk 2 Assignment - Foreign Exchange Markets Summary - 80 of 100

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Wk 1 DQ 1
Post your response to the following: What are some of the common arguments for and
against trade restrictions? Choose a position and describe why you think it is valid.
Respond to a classmate who has selected a position that is different from yours. Did they
provide valid rationale for their position? Why or why not?
Although I am for trade restrictions I am also against trade restrictions. I do not like that
the lack of trade restrictions has made it possible for our domestic companies to send jobs
overseas and thereby let American workers go. I am for not having trade restrictions
because I am able to purchase items at a cheaper price. I do worry however, that some of
the items may not be up to American standards or safety requirements. Like the recent
recall of toys due to lead being contained in the paint.
International trade has many advantages and disadvantages depending on who you ask.
Advantages are mainly economic while disadvantages are typically material based such
as tainted products or poor workmanship. Therefore, many consider a need for national
and global trade restrictions necessary.
Restrictions will always favor one party involved in the trade. These restrictions are a
means of protecting the parties involved both directly and indirectly. For example, one
nation may enter into a trade agreement with another as a means of saving costs for a
manufactured part. However, there are restrictions on the agreement as the first nation
will want to ensure additional business is not lost to the second nation as a result of the
original agreement.
Other restrictions come in the form of quality control. Here in the U.S. it should come as
no surprise to anyone that a large number of product we purchase are manufactured in
China. Some will argue this is a good thing as it helps keep consumer costs lower here in
the states while offering jobs to China’s population living in poverty levels. On the other
hand, many will argue this work should stay in the United States to ensure our
employment levels are high and poverty levels low.
Choosing a side is not easy. There are a number of downstream effects that come with
trade decisions. Personally, I feel as many jobs as possible should remain in America.
This is especially true given the current economic climate in the U.S., but this should be
the case at all times. I could be wrong, but I think Americans are willing to pay higher
prices for certain goods if it means their fellow Americans are prosperous and continue to
have a shot at the American dream. I think trade agreements and restrictions have
ultimately caused more harm to our country than good. Again, this is from a U.S.
perspective. I believe China, Taiwan, and Korea might see things differently.
Some of the common arguments for and against trade restrictions are that it is unfair. I
say unfair to whom the people not involved in the trade or the people involved in the
trade who are trying to make a statement by not dealing with countries with hostile
intentions or hidden agenda. I believe trade restrictions are great for countries who are
being attacked against or standing for something; i.e. United States, we are standing
against not dealing with Korea and others because of them not following directions from

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the U.N. and other nations or their dealing with others that might be harming us or want
to harm us. So I am all for trade restrictions in every way and others that feel otherwise
so be it we are judging the other people for hypothetical situations we(the government)
has some proof to put and hold the trade restrictions in place with others.
Some of the common arguments regarding trade restrictions include national defense—is
any one thing more of a national defense issue than the other? Punishing nations for the
way they treat other nations, a strangle-hold of wills to conform. Protecting small
companies/industry—allowing a company to strengthen ability or resources…the
flipside, how exactly does this take place without punishing more established industry for
being what they are? Protecting local jobs from cheaper labor—complaining that other
countries offer slave labor or under paid wages therefore an inferior product will be
developed… flip side=exporting creates job…people tend to be quick panic as to where
the jobs will all go. Tariffs/ Fair Competition-basically make all products the same cost
regardless of origination…this is sound in theory but the price difference could be unfair
in the matter of cost to profit margins. Fair competition should also reflect on fair
manufacturing configurations. Retaliation oddly enough is part of the argument from
manufacturers to government for “an eye for an eye” mentality. They want their
governments to place restrictions on import goods as they had placed on them. This is
interesting since a third world country is asked by the US to not use lead paint on
products or hey here is a thought do not send products that work.
Personally, I believe in free trade with the proper regulations of duties and tariffs in place.
Also, it is necessary for any type of trade to be monitored by organizations such as the
WTO. I have a problem with the fact that the United States has “dumping” laws in place
in the US but not abroad. I believe all countries need to be held to an equal standard in
trade. This type of action is what the WTO polices and should ensure all countries are
responsible to adhere to.
Some common arguments for and against trade restrictions are of course the economy,
jobs, and the national defense. I believe that some trade restrictions should definitely be
set against foreign countries that are communist nations. Other than that all trading
should be allowed especially because of our economy is in chaos right now. I think that
this is the only logical solution. Why not remove restrictions that are potentially hurting
our economy?
In my opinion, trade restrictions are a fine balancing. While on the one hand trade
restrictions aid in leveling the playing field for ensuring that domestic resources are
competetive with imported goods, while on the other hand, a lack of restrictions can
prove devastating to a local portion of an economy, for instants, agricultual products such
as corn; if a country allows a competing country to overwelhm it with tariff free corn, the
local growers will not be able to compete, thus leading to a loss of business and also jobs
associated with that particular resource. I'm in favor of trade restrictions in order to
maintain the mom and pop businesses that would of course not stand a chance against
foreign powerhouses.
There are several arguments for and against trade. I can not pick a side because I like
something's, and disagree with other things. One thing that I like is trading gives

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