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Trade Debate

In: Business and Management

Submitted By ofid27sal
Words 271
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Tariffs and quotas are tools that the U.S. government uses to gain control over imported goods from foreign countries. These can be used to control trade in a way that favors U.S. manufacturers to protect the local economy. Every country has certain products that it produces and enters into international trade that are different and benefit the other countries by the acquisition of these specialized services and products. The producing country benefits from being able to sell in a market where demand for its goods is high.

Tariffs and quotas are means that can be used to achieve a semblance of economic balance. The import and export of various goods and services is controlled in this way for this reason. The tariff or quota gives the domestic competitors for this product line an economic advantage. It is a means of protecting the income stream for a given country. The home company gains revenues, but the home consumer pays a higher price for the products produced in this country. I see this as trade restriction that hurts the U.S. and world economies. It is not beneficial to the American public. It is only advantageous to the domestic corporations that produce competing goods. They can inflate their prices for like services and products as a result of the tariffs and quotas being in place. These tariffs and quotas artificially reduce the demand curve. They alter our economy and, in my view, impair it. International trade is an economic stimulator from the consumer viewpoint.

References

Mankiw, N. Gregory (2010). Principles of Economics (4th ed.). Florence, KY: South-Western Cengage…...

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