The United States Should NOT Be Linked To Other Economic Countries

My chosen topic to research is, why global business and international trade is important to the U.S.? This topic is relevant to the U.S. as it directly relates to economical lives today and the future. We need to realize the significance of trade and consequently to continue to be a successful nation in providing for the next generations. This international trade is paramount to the U.S. to “maximize product and efficiency; increase market audience and receive foreign direct investment.” (Satterlee 2014). Within the Agriculture industry, the U.S. export reached $152.5 billion over five-year period. In the hearing to pass the Trade Promotion Authority (TPA) it showed the

In modern economic policy of nations and states, the tariffs a tool to tax goods and services being imported. The principal desired outcome for this tool is to create security for the domestic industry from the imported product, which may be cheaper for consumers to purchase. (McEachern, 2015)

How does global trade make us more interdependent? Global trade makes us more interdependent by the impacts of finance, trade, investment, technology and migration. Also, economic, social and environmental impacts. They affect the formulation and implementation of policies at the national, regional and global levels. Among significant impacts is the reduction in the degree of national autonomy in policymaking and the resulting need to better harmonize national policy formulation with international obligations, commitments and compulsions.

The President of the United States is responsible for tackling both foreign and domestic issues. Of the myriad of global and domestic problems, global dependency is the most significant as it impacts the economic wellbeing of people around the world. In the debates and discussions of the Presidential Candidates one of the most controversial issues has been the outcome of America’s current import/export deficit and free trade agreements. On the one hand Ralph Nader argues that corporate America has created the global dependency of “small and large nations” (Nader) on the United States. On the other hand Donald Trump contends that China has purposefully aimed at gaining a stranglehold on our economy. I agree with parts of both perspectives.

➢ Tariffs–Tariff is a government tax that is use to protect the domestic companies by inflict on goods and services with the intention of being imported or exported from a country

It is a common thing to believe that companies from other countries pose a threat to American controlled companies. Companies from America harvest the benefits that they receive from the foreign completion. I believe that international trade affects consumers in an abundance amount of ways. Consumers have access to a greater variety of goods and services from other countries.

Every single major company, not only in the United States, but in the world, has contributed to globalization. It’s hard to find a large organization that has not opted to outsource for materials or labor. Businesses and consumers find themselves enjoying most of the effects of globalization. With the countless benefits of it, the drawbacks are often not discussed. This video did a great job of explaining how globalization might be negatively impacting our economy; however, the video also did not undermine the clear advantages.

Competition from foreign producers affects American consumers in a number of ways. They affect the way we, as Americans, pay taxes, the way we trade with other countries and the limitations of that trade. These trade barriers protect us in order to keep specific industries of the United States safe and to protect parts of our economy. Trade barriers include tariffs, quotas, and subsidies and are a part of our economy because they are necessary for the success of our country.

We all know the universal knowledge that one cannot receive anything without giving something in return. We, being normal everyday American citizens, trade in various ways in our constant, normal lives. To trade, in the simplest of terms, is the buying or selling of goods/services. Trading money for food, or our time for money is just common way that we trade in our normal lives. Now, take the small scale of trading that we all know, and enlarge it to the trade with other countries. The United States trades frequently with other countries in order to keep our economy running. Seeing as a lot of the resources we depend on today can be found cheaper and are easier to obtain in other countries, its only natural that both small and large

Tariffs are perhaps the most common way to restrict, or at least slightly discourage, foreign imports.

The main methods of protection used by governments are tariffs, subsidies, local content rules, quotas and export incentives. Tariffs are a tax placed on imported goods, imposed for the purpose of protecting Australian industries. The economic effects of the tariff include consumers paying a higher price while receiving few goods, redistributing income away from the consumer to the

To encourage development of domestic industry and protect existing industry, government may establish such barriers to trade as tariff, quotas, boycotts, monetary barriers, nontariff barriers, and market barriers. Barriers are imposed against imports and foreign businesses.

For the last 70 years, the U.S. dollar has been virtually unchallenged in international finance. While critics point out that the U.S. has used its leverage to maintain a system that they call unfair, the Hegemonic Strategic Trade Theory (HSTT)

Government intervention is when government gets involved in the markets and takes action to try to correct market failure and so improve economic efficiency (tutor2u, 2014). As for today there is no country in the world where it’s government don’t interfere. Government impose protectionist policies that are intended to support domestic producers using various instruments such as tariffs, anti dumping duties, import quotas and much more (Fouda, 2012). A variety of policies have been proposed and implemented in an attempt to narrow the trade imbalance. In the past decade, many developed countries of the world have increased their level of trade protection to provide support to a range of domestic activities and during tough economic situation (Fung, 1987). There are various reasons for government intervention either political and/or economical reasons. The purpose of this essay is to support the argument that government intervention often result in protecting the interest of producers at the expense of consumer interest using relevant theory. In the following essay, the argument that government intervention often benefits the interest of producer not the consumer will be discussed with real life example. The first section of this essay will support the argument that government intervention in favor of the producers not consumers. Then, the next argument is government intervention in favor of the consumers. The concluding section summarizes the essay’s main argument.

Governments intervene in international trade through use of tariffs that are levied on both imports and exports. The government may either impose fixed tariffs that are calculated per unit of the import commodity or the ad valorem tariff that is calculated as a fixed percentage of the monetary value of the imported commodity. The government imposes high import tariffs in order to control the rate of imports by making the imports more expensive in comparison to the domestically produced substitutes. The tariffs increase the prices of goods and services thus reducing the quantity demanded (Misra and Yadav 2009). The use of tariffs is detrimental to international trade since it lowers competition and results in high prices of commodities in the markets. The tariffs discourage imports and domestic producers benefit from the higher prices and reduction in competition. The EU uses variable