Essays.club - Get Free Essays and Term Papers
Search

The Cost of Trading

Autor:   •  June 10, 2018  •  1,250 Words (5 Pages)  •  468 Views

Page 1 of 5

...

The third is the protection policy. Quotas are seen as more protective because the products are overall limited in quantity in importation. They have a fixed maximum quantity unlike tariffs that tax just the production of imports themselves. Although the protection policy is better for jobs in the country where they have these imported products limited, tariffs are preferred because they allow more market flexibility. Tariffs are also preferred due to the fact that the products taxed are easier to track in terms of revenue over quotas that are hard t measure.

Since the GATT was disembodied in 1994, two other types of organizations have been created to help international trade. The WTO, World Trade Organization, started up in 1995 to carry out the missions of the GATT. The WTO holds trade discussions for 157 countries, and helps dispute and resolve trade issues. They help regulate tariffs and removing any that are obscuring international trade. The IMF, International Monetary Fund, helps ensure financial stability. They help regulate the system of exchange rates and payments between countries. They mostly work with making sure that countries have sustainable economies and reduce the poverty of the world.

In terms of the weak dollar exchange rate policy, I don’t believe the United States should use it in order to help our exporters. I agree that the United States needs to create more jobs to support its population over others, but I don’t believe it has to be in the manufacturing business. We can create more jobs with services instead of goods because the markets are already becoming more competitive with goods. Another reason is the cost of living would go up for consumers. There’s already an inflation happening in the United States, and imposing higher tariffs on international imports means the cost of products would go up as well. I think there are many more steps that need to be taken care of prior to higher import tariffs.

---------------------------------------------------------------

References

About the IMF. (2015, April 8). Retrieved August 28, 2016, from International Monetary Fund, http://www.imf.org/external/about.htm

Editional Board. (2011). Macroeconomics (1st ed.) [978-1-938390-04-3].

Investopedia.com (2008). Tariffs and quotas. In Investopedia. Retrieved from http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/tariffs-quotas.asp

McConnell, C., Brue, S., & Flynn, S. (2009, February 20). Macroeconomics (18th ed.)

Suranovic, S. Trade: Chapter 110-4: The choice between import tariffs and quotas. Retrieved August 28, 2016, from International Trade Theory and Policy, http://internationalecon.com/Trade/Tch110/T110-4.php

...

Download:   txt (7.8 Kb)   pdf (49 Kb)   docx (13.3 Kb)  
Continue for 4 more pages »
Only available on Essays.club