Competition From Foreign Producers On American Consumers

Main protectionist policies include tariffs, quotas, embargos and voluntary export restraints, and Adam Smith’s idea of absolute advantage has been developed further to explain international trade. In recent years, protectionism has become closely related to globalization during which the influences of trades spread almost everywhere, so people insist upon the study of social deformities generated by improper policies on international trade and the task of pointing them out with a view to remedy. There are certainly both economic and political purposes of trade

Following World War II, all of Europe was left in a clutter of disarray. Instead of watching Europe endure the hardships left from the war, the United States went to Europe’s aid. From 1947 to 1952, European nations experienced a time of massive growth. The Marshall Plan called for the nations of Europe to draw up a program for economic and political recovery from the war. The plan was a response to American concerns that communist parties were growing stronger across Europe and that the Soviets might intervene. The Marshall Plan also reflected the belief that US aid for European economic recovery would create strong democracies and open new markets for American goods. After World War II, The European Recovery Program was instrumental in economically

After WWII, much of Europe was left in ruins and millions of people were left homeless and jobless. Soon, however, America stepped in and helped begin the recovery process or better known as the Marshall Plan. This plan included $12 billion in food, equipment and services for both Western Europe and Japan. “Our policy is directed not against any country or doctrine but against hunger, poverty, desperation and chaos. Its purpose should be the revival of a working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist.”(George C. Marshall, An American Plan to rebuild a shattered Europe)

One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best. When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed taxes on trading transactions adding them to the cost of importation, and have the purpose of restricting and/or limiting the imports of goods and services into a country. These government

Marshall Plan- The Marshall Plan was a major aid package allocated to re-build Western Europe following the end of WWII. The main objectives of the Marshall Plan besides rebuilding war-torn Europe were decreasing interstate barriers and regulations, and encouraging increases in productivity, trade union membership, and adopting modern business practices.

In June 1947, Secretary of State Marshall offered economic aid to the nations of Europe, including the Soviet Union, to help them rebuild their economies after all the destruction during World War II (Brands 655). This was offered to bring stability to the nations of Europe so that they could deter the Soviet Union from invading. The Soviet Union and its satellites denied the aid offered by the Soviet Union, but all the other nations of Europe requested $17 billion in aid from the United States, and the Marshall Plan “generated an industrial revival in Western Europe that became self-sustaining by the 1950s” (Brands 655-656). The Truman Doctrine and the Marshall Plan showed that the United States was willing to spend as much money as was needed to protect the capitalistic west and contain communism.

Marshall Plan - The Marshall Plan, also known as the European Recovery Program, channeled over $13 billion to finance the economic recovery of Europe between 1948 and 1951.

Since WWII was needed to take the U.S. out of the Great Depression, the danger of the country returning to that state after the war finished was imminent. One event that exemplified this insecurity was the Strike Wave of 1946, which Truman solved by basically making it consequential by law to go on strike. However, economic problems were still occurring overseas in Europe. In order to assist them, Truman provided “Europe with badly needed economic recovery aid (the Marshall Plan)” (Hastedt). The Marshall Plan was an action that the U.S. took in an attempt to aid Europe’s economy, by paying $13 billion. This seemingly was also made in an effort to reduce the power of the Soviet Union, and allow Europe’s powers to compete, sequentially reducing the risk of an authoritarian influence. There was also Truman’s Fair Deal, which generally dealt with America’s domestic problems, but because of that also addressed its economic difficulties. Since it primarily aimed to make everything fair in domestic life, as the name suggested, the economy improved as a result. Overall, Truman’s economic policy revolved around keeping the economy at a manageable level, rather than having it crash similar to the Great Depression, and have to bring it back up.

Because so much of Europe had been destroyed during the war, many European countries were heavily in debt to the United States and could not afford to rebuild themselves. The United States was able to contribute more than $13 billion worth of food and other good to Europe. The Marshall Plan, which was the European recovery program, was an American initiative to aid western Europe. The goals of the United States were to rebuild war-devastated regions, remove trade barriers, modernize industry, make Europe prosperous once more and prevent the spread of communism. The Marshall Plan aid was divided amongst the participant states on per capita basis.

After the war most of Europe was destroyed, cities were left in ruins and many factories were hit really hard. Many people didn’t have anywhere to go so they ended up in refugee camps funded by the United Nations. Many transportation routes were hit by airstrike merchant ships were destroyed and many small towns and villages that were not hit hard were isolated due to the airstrikes destroying major road and modes of transportation. The U.S decided to implement the Marshall plan that was officially called the European Recovery Program. This was a plan for the U.S to help aid Europe by giving them economic support so they could start to rebuild the European economies at the end of World War II and to stop the spread of communism. The plan started in April 1948 and lasted for four years. During these years the U.S started to rebuild war torn cities, remove trade obstacles, modernize industry and helped to make Europe self-reliant again.

Famine and unemployment, coupled with the near destruction of the continent’s infrastructure left Europe on the brink of economic collapse and starvation. America began supplying financial aid to Europe immediately after the end of the war, George C. Marshall developed the first piece of foreign policy that would serve to not only assist in the rebuilding of Europe, but also counter the growing communist influence on the continent. “Marshall was convinced the key to restoration of political stability lay in the revitalization of national economies. Further he saw political stability in Western Europe as a key to blunting the advances of communism in that region.” http://marshallfoundation.org/marshall/the-marshall-plan/history-marshall-plan/

In June 1947, the United States announced the Marshall Plan, intended to help economic recovery in Europe and thus prevent the spread of Communism in a Europe that was increasingly becoming “a breeding ground of hate”, thus providing a comforting environment for the rise of the Marxist ideology. At first, the Marshall Plan seemed to be a success, with economic aid worth $17 billion being made available to Europe and ensuring the protection of democratic governments in Turkey and Greece. Marshall Aid did help economic recovery in Europe, erasing unemployment and improving living standards greatly. Most Western European nations were happy to accept American aid in order to redevelop their economies. However, Stalin forbade any Eastern European countries from accepting the Plan and setup organizations like the Cominform and Comecon instead, to further tighten Stalin’s grip over Eastern Europe.

Sometime during June 1947, George C. Marshall wrote a proposal for the United States to help in the reconstruction of Europe after World War II. This document is intended for the Europeans whose country was affected by the war and needs help rebuilding. The purpose of this document is so that the Europeans could collectively agree as to what type of aid they need.

The foreign producers have a positive effect on the American economy and American consumers benefit from the international trade. The trade barriers restrict free trade, which in turn affects the realization of gains from specialization and economics of scale negatively but they have to be enforced in certain circumstances in order to safe guard the national interests.

In this I am going to assess the methods to increase trade between countries and the methods to restrict trade between countries. When asses the methods of encouraging and restricting trade I will talk about the purpose for the methods of promoting and restricting international trade, identify how and why they might be used and I will decide how useful each method is giving appropriate reasons for it. International trade is the exchange of goods and services between countries.