Question

Introduction

Decision making in finance is rarely black and white and one decision can be appropriate for one situation and not appropriate for another. Point and counter-point discussions should highlight this as well as expand upon the ability to support a decision that may not be supported by others in the same department.

Initial Post Instructions

Consider the following point and counter-point arguments then use the Internet to learn more about the issue. Which argument to you support? Explain why and offer your own opinion on the issue.

• Point: Agencies that facilitate international trade prevent free trade. The Export-Import Bank of the U.S. provides many programs to help U.S. exporters conduct international trade. The government is essentially subsidizing the exports. Governments in other countries have various programs as well. Thus, some countries may have a trade advantage because their exporters are subsidized in various ways. These subsidies distort the notion of free trade.
• Counter-Point: Agencies that facilitate international trade do not prevent free trade. It is natural for any government to facilitate exporting for relatively inexperienced exporting firms. All governments provide a variety of services for their firms, including public services, and tax breaks for producing products that are ultimately exported. There is a difference between facilitating the exporting process and versus protecting an industry from foreign competition. The protection of an industry violates the notion of free trade, but facilitating the exporting process does not.
• Initial Post Length: minimum of 350 words

Answer 1

The protection of an industry violates the notion of free trade, but facilitating the exporting process does not.

Today when world is fast becoming a Global village and with The World Trade Organisation advocating free trade and movement of goods and services without any subject to trade barriers, it is also seen as threat to domestic industries. This sense of insecurity and falling behind in competition compells the Governments to take steps to provide support to their domestic industries.For example the kind of Support U.S federal government provides to its farmers is unprecedented In 2019, the federal government delivered an extraordinary financial aid package to America's farmers. Farm subsidies jumped to their highest level in 14 years.

So all the countries which otherwise advocate Free trade are seen alltogether working against its spirit, the reason is obvious if world is a global market than the most efficient and one who produces better at less cost will gain.Take it as an example, the economic relationship between the United States and China The U.S. trade deficit with China was $315.1 billion in 2012, rose to $367.3 billion by 2015 before dropping to $346.8 billion the next year.1 By 2018, it had increased to $419.2 billion, before falling to $345.6 billion in 2019.

So if this is the result of free trade what will be the reaction? so read this, President Donald Trump in 2018 began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are "unfair trade practices".[Among those trade practices and their effects are the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China.

So though free trade is need of an hour but protection and growth of your Industry is equally importan. There is nothing wrong in Importing but only importing will ruin any economy so support to Increase Exports is must.