...International Trade Debate XECO 212 International Trade Debate The strength of the dollar rests on the fundamental strength of the US economy. The main problem with a stronger dollar is the concern of exports. A stronger dollar makes U.S. exports more expensive for foreign consumers and buyers. A tariff is a tax that one country sets on the imported goods or services of another nation. A quota in international trade is a government imposed limit on the quantity or the value of the goods and services that may be exported or imported over a specified period of time. Quotas are more effective in restricting trade than tariffs, particularly if domestic demand for a commodity is not sensitive to increases in price. Because the effects of quotas cannot be offset by depreciation of the foreign currency, quotas may be more disturbing to the international trade mechanism than tariffs. A tariff raises the domestic price, the domestic sellers will make out well while the domestic buyers are worse off. Tariffs hurt the country that imposes them, as their cost outweigh their benefits. Tariffs are a benefit to domestic producers who now face reduced competition in their home market. The reduced competition causes prices to rise. There are costs to tariffs. The price of the good with the tariff has increased; the consumer is forced to either buy less of this good or less of some other good. The price increase can be thought of as a reduction in consumer income. Since consumers are purchasing...
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...Mandy Fowler International Trade Debate July 2, 2015 XECO/212 Protectionism is a highly debated issue in international trade. Two of the most commonly used tools are tariffs and quotas. A tariff is basically a tax that raises the price of imported goods so they become more expensive than domestic goods that are similar, and the countries that levy the tariffs use them as a source of revenue. This tool is used to increase the demand of domestic goods and reducing the volume of imported goods. Quotas are limits that are set on the volume of imported goods and can be expressed by a country as a percentage of sales of certain products or the number of units sold. Tariffs raise the price of imports. Higher costs of imports mean that exporting industries suffer raised costs of doing business and can possibly cause a decrease in the quality of products for those businesses because the businesses are trying to cut costs to balance the cost increase. Tariffs are more transparent and they are easier to administer, which means it is easier for trading partners to negotiate and decrease or even eliminate them. Quotas are usually used for the protection of infant industries and to keep market entry costs low for domestic producers and they can also be used to protect strategic industries like defense and agriculture. When imports are rising in a market environment, a quota can be more effective than a tariff. However, quotas can require a lot of paperwork to indicate the exact amounts...
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...International Trade Debate XECO/212 University Of Phoenix/AXIA The United States uses tariffs and quotas to restrict trade with foreign countries. This is imperative to control foreign imports and the impact they have on our economy. All countries produce goods that are available on the open market, such as automobiles, lumber, consumer electronics etc. The United States has a manufacturing base that is shrinking because of competition from other countries. In order to slow the progression of this decline we place tariffs on countries that produce products that we sell at home. Being one of the world’s most financially affluent countries we create a large market for goods, especially cheap goods that are mostly produced in countries that have much lower working condition standards than the United States. This gives the importing country an edge in the profit margin by way of the lower cost of production. In order to maintain equilibrium in the world market we impose tariffs and quotas. The benefit to the domestic producer is one that in many cases keeps the manufacturing base viable in the U.S., but this advantage predominantly effects the larger corporations that are beginning to take over much of the market, while the inflated prices and increase in jobs does not end up in the mutual pockets of the workers, but rather concentrates to the top. In many ways this is counterproductive because if the U.S. were to lose a manufacturing industry, the jobs it creates that do not...
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...XECO 212 Week 8 CheckPoint International Trade Debate Due Day 5 A tariff is usually a tax that one country sets on the imported goods or services of another nation. A quota is a trade restriction set by a country to maintain and secure the country’s interests by limiting the amount of goods that can be imported into the country for a fixed time period. The tariffs and quotas in the United States were established to control the amount of goods that enter into the United States to protect the United States interests economically while still maintaining the healthy trading relationship with other countries. The United States utilize these trade restrictions to decide which countries will be suitable. These trade tools are meant to guard the country’s economic interests and establish relations with particular nations. Some critics of these trade tools argue that tariffs and quotas often lead to corruption, such as with smugglers seeking to escape tariffs and quotas and high prices for consumers as there is less competition between domestic and international goods, which tend to be less expensive.I think that it is very important that trading with other countries is limited. With the economy that we are currently in, many people stand to benefit from their products being bought and sold locally. On the other hand, there are some products that can be produced here, but not in a high enough quantity to meet the demands for those products. This is where trade comes in. By putting...
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...MY NEW HOUSE XECO/212 PRINCIPLES OF ECONOMICS 7/25/2012 Many of the decisions we make as consumers are directly related to the current state of the economy. Moreover, as consumers are faced with life changing purchases, they will weigh the marginal costs and benefits associated with their purchase. This is most apparent when there is a decision to purchase a new home. Throughout this paper I will explore the economic principles that directly relate to this type of purchase, as well as identify the contributing factors that help shape the strength of our economy. The decision to purchase a new home can be a daunting and challenging choice. As current homeowners will testify, various factors will contribute to this life-changing decision. One of these factors includes trade-offs, which they will face before and after their purchase. This trade-off is one of the fundamental principles of economics; stating that we must give up something to receive something else. For a perspective homeowner this trade-off can be a reduction in the amount of available purchasing power. Once the purchase has been completed, the homeowner would be required to spend any extra money on their mortgage payment. Or for a couple who travels, it could be the loss of multiple vacations to popular destinations around the world or for someone like me who enjoys getting massages on a regular basic it would become no more. Moreover, this first principle defines that every decision...
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