This website uses cookies to ensure you have the best experience. Learn more

Free Trade: America Should Not Protect Industries From Foreign Competition

861 words - 3 pages

Free Trade: America Should NOT Protect Industries from Foreign Competition

Many politicians oppose free international trade, trade without any restrictions, for a couple of reasons. From their point of view it would affect the United States in several ways:

1. Many USA workers would lose their jobs because factories would be moved to the
country with whom the U.S. has a Free Trade Agreement, and where working force
is much cheaper.

2. Importing foreign goods and services without tariff into the United States makes
it harder for domestic industries to compete with lower prices and better
quality of foreign competition.

3. Some politicians feel that it is not the right decision to have open trade with
countries where the workforce is forced to work and where prisoners are used as

Because of these reasons, politicians who oppose Free Trade, feel that the U.S. should have some kind of restrictions, such as protective tariffs, import quotas, non tariff barriers, and/or export subsidies. However, some politicians and economists feel differently. They say that if some country would raise its barriers in order to reduce imports and stimulate production, the country whose exports suffer may raise its barriers, too. This would cause a trade war. The trade war would effect every nation in lower output, income, and employment; example is the Smooth-Hawley Tariff Act of 1930.

The United States is enjoying its second longest period of sustained economic expansion with real GDP growth averaging over 2.8% during the years 1992-96 and accelerating to 3.9% in 1997-98. The United States’ strong economic performance is due in part by trade and investment liberalization resulting from the Uruguay Agreement and the North America Free Trade Agreement (NAFTA). The openness and freedom of the economy has contributed to improving the competitiveness of the U.S. producers, creating more and better paid jobs, which in turn raised labor standards and reduced poverty. At the end of 1998 the unemployment rate fell to 4.5% and consumer price inflation to 1.6%, which is the lowest level since the 1960. This outstanding macroeconomic performance has been greatly followed by a large and growing current account deficit, which in 1998 reached a record level of $223 billion (2.7% of GDP). The trade deficit has enabled the U.S. economy to keep up with its strong rate of growth.

Open economy brings imports, which are often at a lower price, and they help to satisfy...

Find Another Essay On Free Trade: America Should NOT Protect Industries from Foreign Competition

Free Trade in South America: Mercosur and Other Groups

1643 words - 7 pages compete on a world stage, they would need to implement a common market. South America has had plenty attempts at common markets, Latin America was first with the Central American Common Market, which they followed with Latin American Free Trade Association. The Latin American Free Trade Association included some countries from South America, making it South America’s first try at a free trade area. Soon after, a sub group called the Andean

Bush Free-Trade Diplomacy Has Corporate America Steaming

800 words - 3 pages a three-year slump, Corporate America would rather have its needs -- not diplomacy -- as trade strategy's Job One.Bush Free-Trade Diplomacy Has Corporate America SteamingIn fighting the war against terrorism, the Bush Administration offered free-trade deals to allies from Australia, Morocco, and the Persian Gulf territory of Bahrain. The goal for this act was to "reward friends, enhance economies, and spread the free-market gospel". However, many

America should not withdraw its troops from the war in Iraq

822 words - 3 pages It wouldn't be wise to pull American troops out of Iraq. Not only have we put so much of our time, dedication and money into helping improve Iraq, but there have also been a great number of lives that have been sacrificed for the benefits of the Iraqis. Withdrawing our troops from Iraq would give countries the impression that we don't finish what we start and leaving Iraq now wouldn't solve their problems--it could even worsen them. We should

Essay Title: If free trade is so advantageous to everyone, why have many countries attempted to increase protection for their own industries and farms in recent years?

1127 words - 5 pages future. The governments which want protect more should know there were many good examples get to the success without protection from foreign competition. The national security argument against free trade is that which claims that the dictates of national security take precedence over trade. In other words, countries need to be self-sufficient in the production of certain strategic industries. (O'Brien&Williams, 2004) These may be related

“Monopoly Power Exploits Consumers And Misallocates Resources. Therefore, Natural Monopoly Industries Should Not Have Been Privatised.” Discuss

1722 words - 7 pages overall and whether or not current public natural monopolies would benefit from privatisation.There are many companies that were once nationalised and are now privatised that I could use as an example to try to answer the question of whether or not the statement is true. The main example that I will be using for this essay is that of the railway track in the UK. I will be referring to others also, but I feel this example to be very relevant and

The Steps Which America Should Take to Reduce Our Dependence on Foreign Oil

1018 words - 4 pages , economic impacts for the U.S. will intensify. It is possible for America to reduce its dependence on foreign oil, but the petroleum industries and other monopolies have paid Congress to take out the competition (Worthington, p. 1). Legal monopolies are targeting the market effects of foreign oil, which increases profits, while America’s government obliges them. Unfortunately, these de jure monopolies have kept America in a dirty fuel monopoly

whether or not the united states should have free healthcare - McCutcheon - research paper

1141 words - 5 pages from the average American's tax check. This is not to say that a person is not entitled to some sort of healthcare, but rather the opposite. Those who have the money for free health care should pay for it. There is no sense in giving “free” healthcare to those who could pay for it on their own. Insurance should be handles on a state by state basis, rather than it be handled by the government. Along with that the federal funds should be

Abortion Should Not be Legal in The United States of America

2954 words - 12 pages Abortion Should Not be Legal in The United States of America In Roman times, abortion and the destruction of unwanted children was permissible, but as our civilization has aged, it seems that such acts are no longer acceptable by rational human beings. In 1948, Canada along with most other nations in the world signed a declaration of the United Nations promising every human being the right to life. The World Medical Association meeting in

Boeing And McDonnell Douglas Response To Competition From Airbus Industries

772 words - 3 pages Subject: Boeing and McDonnell Douglas response to Competition from Airbus Industries My analysis of the case of Boeing, McDonnell Douglas, an Airbus Industries revealed and ever more difficult trade environment resulting from unfair government support from the European conglomerate, thereby giving Airbus an unfair competitive edge from a pricing standpoint. The only reasonable way to fight off Airbus would be a merger of

Guns in America - History assignment about whether or not I believe the 2nd amendment should be modified due to changes in society over time

909 words - 4 pages towards the others, and these games are just that to them - games. In the US, where we have a culture that is more focused upon "only the strongest survive", this glamorizing of mercilessly shooting people is bringing nothing but trouble to the minds of the youth of America. I'm not saying we should get rid of the games, no - I don't think that's the problem. The problem is that it is far too easy to mimic these games. It's far too easy to go into a

Laws That Protect Citezens From Themselves Are Not Justified

842 words - 3 pages which states laws that protect citizens' from themselves are justified. Criteria: The best criterion for this debate is liberated order, which is Accountability for consequences of liberties.Definitions: All definitions taken from the Webster's online dictionary.Liberty: Freedom Privacy: Being free from any unauthorized intrusion in ones life.Individualism: The belief that the interests of the individual out to supercede the interests of the group

Similar Essays

Free Trade, Protection, Liberalizations And The Main Methods Used By Governments To Protect Domestic Industries

1272 words - 5 pages Free trade occurs when goods and services flow freely between economies without governments imposing restrictions in the form of trade barriers. Protection occurs when governments attempt to give domestic producers an artificial cost price advantage over its foreign competitors. Free trade is based on the principle of comparative advantage. In the 19th century the economist David Ricardo attempted to show that countries should specialize in the

Protectionism And Free Trade In America

2094 words - 8 pages industries who consume foreign goods. Those producing or offering less competitive goods or services might argue that they would be placed in jeopardy if they had to compete in a free market. Although this is quite possible, in a free society, there's nothing to stop them from taking the action necessary to make themselves competitive and to turn the tables on the foreign imports. After all, under free trade, they would have access to world markets that

America Should Not Become Bilingual Essay

2553 words - 10 pages should (Costco). (This too is a non-representative poll because it was taken by those who are on the internet and was not accessible to all.) But is America becoming a monolingual country the best solution? No.         According to the ACLU, versions of the proposed English Language Amendment would void state and federal laws that provide services in languages other than English (ACLU 2). Services that would be affected range from: health

Free Speech Should Not Be Restricted

540 words - 2 pages right of the people peaceably to assemble, and to petition the government for a redress of grievances. Free speech should not be restricted.  The first amendment gives the right for anyone to say whatever he or she wants, whenever they want and guarantees us the privilege to speak our minds without limitations.   Our right to free speech is one thing that sets the United States apart from any other country.  Since September 11, 2001 all eyes