Essay on The Theory of Comparative Advantage

The unemployment rate has dramatically increased over the last several months. This increase has created many complications for the American people. Although the United States economy has created over 7 million jobs, there is still a long way to go until the economy is back on track.

The question to whether we should buy strictly American made products has been around for a long time many people think it’s a good idea and many think it’s a bad idea. I think that we should buy strictly American made products because if we start making these products our self it could open up more jobs for Americans to fill and it could help to drop the unemployment rate. It has been stated by Roger Simmermaker that “In just the last 10 years the United States has lost out on approximately 2 trillion dollars in cumulative trade deficits with china alone”(Simmermaker 1). That is money that we the Americans could have profited from if we would just make the products ourselves and buy from other

“Buy American” creates a huge political payoffs for the officially elected officers who protect job in domestic industry. Research shows for every job protected and saved, about two jobs are lost. For instance: In 2009 Canadian Representatives who were cons or upset of “Buy American” voted for “Buy Canadian” that would block American companies from bidding on contracts. The result will be loss of trading partner, and of course loss of American Jobs.

The job market is not growing, but the American population is. Big business and government are not addressing the job crisis for the average working class. Policies are not being put into place to support those who are suffering. The American Dream seems to be changing into the American Nightmare. Society is favoring a technologically advanced world of big business where the average citizen is not looked after or supported. This kind of treatment is hurting not only the working people, but also the country as a whole. The United States is slipping in the ranks globally, and other more successful countries have continued to show that maybe the solution to this problem is to stop and finally listen and tend to the everyday

The United States has an absolute advantage over the technological products and services which are critical. Within the global markets, the U.S has been able to provide tech products and services appropriately. However, it has comparative advantage of offering tech services while the absolute advantage exists in technology design and providing industrial capacity. The U.S is a major exporter in the international markets of products such as civilian aircraft, semiconductors, cars, car accessories, fuel oil, and organic chemicals among others. Such exports improve the U.S's comparative and absolute advantage.

If you ever question whether American made matters, consider the way that the U.S. automotive industry has devolved. At one time, American auto makers led the world in their sector. Today, jobs that were formerly held by Americans have been outsourced to workers in other countries. In order to inject new life to the Middle Class and level the playing field once again, we must insist on the availability of American made products. Our buying decisions could make all the difference for Americans now and in the future.

Have you ever thought about those little words in fine print that tell you where a product was made? How about the last time you put tires on your car? Before you made a decision on the purchase did you stop and ask where the tires are made? Probably not! You heard the only words you wanted to hear....good and cheap! When did we stop caring about where a product is made or did we ever? Why would this matter anyway and what importance is of it? Some may argue that free trade and imports give us purchasing power. They believe cheaper goods results in more money in our pocket to buy other goods. That theory is a farce with little to no data to support it. Buying American made supports job growth, the environment and human rights.

The best solution would to be to save our money and work hard at what we do. Though it may seem that there are no jobs available to us at the moment, we do have to trust that the companies around us will see it better to provide domestic jobs rather than sending them overseas. Though I don’t entirely agree with how Franklin D. Roosevelt tried to solve the Great Depression, I have to admit that what he did he thought he was doing for the best. Great presidents like Obama, Roosevelt, and even Hoover are great because they think of us and not

"Made in America" is a label that people often see on a variety of goods they purchase in the United States. For years, people have been opening their eyes to the importance of American manufacturing and taking steps toward supporting the manufacturers of these goods, as it has a positive effect on the population, economy and more. The desire to purchase only American-made items has grown, and whether it be because of the price or quality is not fully known, but it can be said that it is good for America.

It is a good practice to buy American made goods if possible. Because the American public no longer thinks before they buy an item, we are losing out manufacturing base every day that passes on the calendar. Every day you watch the news there are stories about how bad the economy is and getting worse with each tick of the clock. In the recent history, United States of America was the leading exporter of goods but now we run a trade deficit each year. John Carpenter in the article “Why You Should Buy American Made Products,” at the website http://ezinearticles.com has made the point that the American public has to take a share of the blame because they have lost their patriotism and pride.

The U.S. job market is currently under siege. The global market shows no mercy and America is not an exception. Ever since the “Great Recession” of the late 2000s, millions of people have been out of a job. According to a chart on the United States Bureau of Labor Statistics, a federally managed website, there are still large amounts of unemployed people in some states: Many states in the U.S. still have an unemployment rate of over five percent (“Unemployment”). The United States needs to create more jobs. The economy is not in its best shape due to the multitude of job cuts in the U.S. workforce. There are many reasons that have contributed to the catastrophe of America’s workforce, but there are also plenty of solutions. The United States economy has too few of jobs to satisfy the global demand, but there are many strategies involving both business and government that can solve this problem.

If the American people were at risk of a failed economy, surely American allies would come to the rescue and help, moreover if the U.S. goes into other Nations, they gain allies along with providing the other country aid and support. Although the United States has had a respectable amount of experience in reconstructing countries ever since after WWII ended, the United States has not really invested “similarly adequate

The theory of comparative advantage explains the benefit of free trade. According to this theory by David Ricardo in the early 19th century, “Both countries will be better off if each specializes in the industry where it has a comparative advantage, and if the two trade with one another.” (Citation) International trade opens up markets to foreign supplier, and domestic companies need to improve their efficiency, boost productivity, and lower cost to increase competitiveness instead of enjoying monopolies or oligopolies that enabled them to keep prices well above marginal costs. On the other hand, international trade also offers domestic companies bigger demands and broader markets; therefore more jobs relevant to export have been created. Furthermore, jobs in the US supported by goods exports pay 13-18 percent more than the US national average (ustr.gov).

Competitive advantages are conditions that permit an organization or nation to deliver a decent or administration at a lower cost or in a more alluring manner for clients. These conditions permit the gainful element to produce a bigger number of offers or unrivaled edges than its opposition. Competitive advantages are ascribed to an assortment of components, including cost structure, mark, nature of item offerings, dispersion and system, licensed innovation and customer support. Samsung had settled on the choice to receive design as a wellspring of competitive advantage in the 1990s. Prior, the company 's items had been unsatisfying and undifferentiated. In the mid1990s, the Group administrator, Kun-Hee Lee, started Samsung 's change from a low-end OEM into a world-class gadgets organization. Honing the company 's design aptitudes was a critical part of the activity. Be that as it may, this required significant changes in culture, procedures, and frameworks inside the organization. Samsung understood that competitive advantage can be accomplished through the design innovation. Samsung 's voyage toward design greatness began in 1993. That year, Lee supposedly went by a gadgets store in Los Angeles, USA. He saw, sadly, that the Samsung items in plain view looked ugly, while the results of Sony and some different organizations looked a great deal all the more engaging. He discovered too that the business staff at the store were themselves overlooking the Samsung

Comparative advantage is a principle developed by David Ricardo in the early 19th century to explain the benefits of mutual trade (Carbaugh, 2008). Many underlying assumptions of comparative advantage depend on states of economic equilibrium and an absence of economy of scale. In reality, economies are dynamic and subject to innovation and interference; which has led to revised assumptions of return and competition (Krugman, 1987). These factors have created questions of free trade and governmental participation in an economy by the development of strategic trade policies. These new concepts do not replace the theory of comparative advantage; however, they further explain how trade can benefit a country's economy (Krugman, 1987).