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).ORDER NURSING COURSE WORKS HERE
  • 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.

Format your assignment according to APA guidelines.

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International Trade Summary Assignment

International Trade Summary

            The benefits of international trade are massive. With international trade, the variety of goods and services in the global fair. As a result, consumers have a variety of items to choose from. Global business increases competition between countries and sellers. Companies try to sell quality and cheap to compete with others. International trade allows domestic companies to export products to other nations. Even though global dealing appears lucrative, free trade does not always work to the advantage of all dealers involved. For instance, the United States president, Donald Trump, is against free trade based on the trade policy imposed. The United States of America has imposed increased trade tariffs on imports to protect domestic producers and reduce trade deficits. The president prefers bilateral trade deals over multilateral free trade deals.

Evaluate how US trade policy changes in the last two years affect global trade activities by multinational corporations.

           The United States of America contemplated imposing a 25% trade tariff on Chinese goods worth 250 billion dollars. An extra 7. 5 % trade tariff was imposed on Chinese imports worth 112 billion dollars. Moreover, the united states continue to threaten trader that additional charges will be imposed on goods made in china. The high tariffs are good for the United States because nearly 100 billion is collected from China’s goods. President Trump’s “wrath” has been extended to the European Union after winning the WTO trade dispute. A 100% trade tariff has been imposed on goods and services from the European Union. Two years ago, the United States government cited that it will impose tariffs on washing machines and solar panels. Taxes from washing machines and solar panels will amount to 0.59 billion dollars and 0.78 billion dollars, respectively (York, 2020). The government of China has retaliated to counter USA tariffs targeting its shipments. The Chinese government targets taxes close to 150 billion dollars from American goods. American companies that produce and sell steel and aluminum are affected because approximately 9 billion dollars will be drawn from taxes. When taxes are imposed on goods and services, the cost burden is pushed to the consumer. Hiked prices are not afforded by average consumers (Chow, 2019). As a result, consumers will prefer united States products cheaper than those from China and the European Union. Even though heavy taxes on imports protect local and domestics companies, multilateral organizations are negatively affected.

Discuss credible economists’ opinions on the long-term effects of trade and tariff policy changes in the last two years.

              According to York (2020), the American administration has imposed over 80 billion dollars’ worth of taxes from imports. These figures are the highest to be recorded in the history of the United States of America. Both retaliation tariffs and American tariffs imposed will lead to high poverty levels, joblessness and reduced economic output. Lately, trump policies have reduced the country’s gross domestic product in the form of income and wages. Consequently, massive jobs have been lost.

            Further imposing of tariffs would reduce the gross domestic product even more. Besides the imposed tariffs, retaliation and threatened tariffs would affect the projected long-term economic proceeds. Wei (2019) believes that free trade in the United States of America increase economic output and boosts the GDP. They also agree that heavy imposing of tariff creates a deficit of products in the global fair. Moreover, the prices of products hike, thus affecting the consumer power (Chow, 2019). Taming importation through taxes leads to unemployment and affects inter-country economic ties (York, 2020). 

Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.

              After the Trump administration decided to tame cheap products through imposing taxes from foreign markets, lumber, aluminum, steel and home appliance companies are the biggest beneficiaries. These companies have always whined about unfair competition from cheap products from china, which are eligible for subsidies (Eavis, 2019). Even though companies are pushing the price burden on consumers due to heavy tariffs, local companies hire more staff while multilateral companies are scaling down. My brother is an employee at Westervelt. He says that the company is determined to invest more since the government has tamed cheap products from china. The company plans to improve infrastructure and employ more employees. 

References

Eavis, P. (2019). These Companies Wanted Tariffs. How Are They Faring Now? (Published 2019). Nytimes.com. Retrieved 30 October 2020, from https://www.nytimes.com/2019/07/10/business/economy/companies-tariffs-winners.html.

Chow, D. C. (2019). United States Unilateralism and the World Trade Organization. BU Int’l LJ37, 1.

York, E., Pomerleau, K., & Bellafiore, R. (2019). Tracking the Economic Impact of US Tariffs and Retaliatory Actions. Tax Foundation, August27.

Wei, L. (2019). Towards Economic Decoupling? Mapping Chinese Discourse on the China–US Trade War. The Chinese Journal of International Politics12(4), 519-556.