Assessment: International Trade Evaluation
Promoting international trade is not a zero-sum game. It is
a win-win proposition; both parties gain from trade.
Consider the following:
Tariffs are paid by the citizens of the country
imposing tariffs, not by the citizens of the country producing the products
upon which the tariffs are levied.
The term “trade deficits” is a misnomer. Every
country’s trade is always in balance.
Trade deficits do not mean the US no longer
produces anything to export. The US is the world’s second largest manufacturer
and the world’s second largest exporter of manufactured goods.
Trade deficits reflect a strong economy. Trade
deficits rise during economic expansions and fall during economic contractions.
Unemployment falls as trade deficits rise and rises as trade deficits fall.
Imports and exports are complements, not
competitors. Both are necessary and both contribute to economic growth.
Roughly one-third of all US imports and exports
is trade between US multinational companies and their overseas subsidiaries.
Foreign-owned companies operating in the US
number in the thousands and provide directly or indirectly jobs for more than
13 million US workers (roughly, 10% of the US workforce).
US trade deficit in goods in 2018 (as a % of
GDP) was the same as it was 5, 10 and 15 years earlier.
The rise in US goods trade deficit with China
has not increased the US total goods trade deficit. It has been offset by reduced
goods imports from other trading partners.
There is a strong correlation between the rise
in world trade and:
The rise in world GDP
The dramatic fall in the world’s extreme poverty
The rise in world life expectancy
For every US manufacturing job lost to trade
between 2000 and 2010, seven US jobs were lost to domestic productivity
improvements. Those seven jobs cannot be brought back from overseas because
they never left the US.
Write a 700- to 1,050-word evaluation of credible
economists’ unbiased opinions on the benefits, costs, and results of current US
trade and tariff policies. Complete the following in your evaluation:
Evaluate how US trade policy changes in the last
2 years affect global trade activities by multinational corporations.
Discuss credible economists’ opinions on the
long-term effects of trade and tariff policies changes in the last 2 years.
Explain the effect recent changes to trade and
tariff policies have had on your employer, you, or someone you know.