International Trade Debate

International Trade Debate

Most countries have erected trade barriers in one form or another. Free trade offers may benefit both internationally and domestically. These restrict the potential gain from trade and add to stunting the progress.

Tariffs are nothing more than taxes put on imports from other countries as well as the United States pays taxes to other countries for the goods they import as well. Tariffs result in higher domestic prices and lower consumption. When tariffs are put in place people can't afford foreign goods so the prices of domestic goods go up. Prices go up and the prices of the products used to make the goods are at higher price also raising the cost of the goods when finished.

An import quota puts limits on specific goods and quantities or value of the goods that are imported into the country. They are used to protect domestic goods and restrict foreign goods such as shoes. Tariffs raise revenue for the government, where an import quota may not. Import quotas generate surplus for import quota generates surplus.

The U.S. dollar, is the still the benchmark for world currency, has been declining in its value for many years. The weakening of the dollar benefits other countries which will move The U.S. dollar, still the benchmark for world currency, has been declining in value the past several years. The United States has the biggest impact on the global economy and its value and fluctuating weakness has an effect on the global economy. For instance in some of my family members traveled overseas and got less for the dollar bill than they would have gotten in the United States. On their return they were sure to have converted over as much as they could know they would lose money. Years ago many people from Europe traveled to the United States, specifically New York to make purchase knowing there money was worth more and they would be getting a bargain on their purchases. Many countries are thinking of going to one global money system so that we will all be using the same money and it will all have the same value. This is due to many countries losing money in their own area and looking for a global answer to make if better for all involved.

I had a discussion with one of my members today on how back 40 years ago he said he could buy cigarettes for .30 cents a pack. How going to the grocery store prices were cheaper and prices were much cheaper on just about everything. My grandpa and dad would always say to me back in my day that candy bar cost me a dime now a days it is over a dollar for a standard candy bar and nothing about it has changed except possibly demand and cost producing the candy bar.