U.S. International Trade Policies

U.S. International Trade Policies

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

As a business owner, you need to approach the issue of globalization and trade in context. With all the complicated tariff and nontariff trade policies, organizations, and government involvement, the important question to ask is why the United States maintains certain economic policies.

Consider the following questions:

Research where you would find the U.S. international trade policies and their history as they apply to various industries.
Chose two industries, and focus on those.
Do the economic trade policies today help or hurt business owners and laborers?
Is the automobile industry protected?
Is it considered an infant industry?
What tariff policy is in place for automobile manufacturers?
What type of administered protection is in place, if any?
Compare the automobile industry to the two industries you chose to research.
How could the state or local representative help or hurt a business owner in the era of globalization?
How did the policies for manufacturers of automobiles evolve? For example, what influences do the following organizations have on business owners, and what is their history?
The World Bank
The IMF
GATT
The European Union
NAFTA
The Doha Round
Does NAFTA affect the automobile industry’s decisions on what to do with labor costs? Capital costs? If so, how? Was this trade agreement good for the United States from an economic standpoint? Was it good for Mexico from and economic standpoint?

sample answer

USA, Japan, China and Germany are the largest exporters and importers in the world. To facilitate trade with other countries, USA has formulated many international trade policies. Trade policies of the United States were initially developed after the great depression. Congress makes International Trade Policies in the United States. The policies deal with tariff rates, remedies against the unfairly trade imports, trade agreements, sensitive technology export control and tax preferences to the developing countries imports. The country is a partner to various international trade agreements such as GATT and IOT. Agriculture and oil trade policies form part of the most crucial economic policies that regulate how United States trade with other countries (Kee, Neagu & Nicita, 2013).

USA Agricultural International Trade Policies

In US agriculture export accounts for 10% of the total merchandise export of US and accounts for more 20% of total US agricultural production. There is trade surplus in the US agriculture. 2008 farm act allows the exporters of some commodities (commodities in Export Enhancement Programme), to selected countries at a lower price than US market price. The government awards cash or redeemable commodities certificates to these exporters. USA has the lowest agricultural import tariffs amongst all the WTO members. It has average bound tariffs of 12% on agricultural goods (Kee, Neagu & Nicita, 2013). However, the low tariffs exclude some products like tobacco sweeteners and dairy products. Tariffs and tariffs quotas limits the Importation of the lower priced commodities. Under the free trade agreement, USA allows some tariff quotas to its preferential trading countries (partner country). This is in addition to the tariff quotas which are given by the WTO.

USA Oil International Trade Policies

USA is a net oil importer and it consumed 18.8 million barrels every day in the year 2011. Paley Commission that was appointed by President Truman supported oil policies for high domestic oil production especially from oil shale but also advised against import trade barriers raising. President Eisenhower, using the Trade Agreements Extension Act of 1958, developed oil import quotas. Oil import Quota was replaced with import fee in the year 1974…………………….

Reference

Dunning, J. H. (2013). International Production and the Multinational Enterprise (RLE International Business) (Vol. 12). Routledge.

Kee, H. L., Neagu, C., & Nicita, A. (2013). Is protectionism on the rise? Assessing national trade policies during the crisis of 2008. Review of Economics and Statistics95(1), 342-346.

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