In: Finance
The issue on US being too much dependent on foreign imports and US manufacturing jobs moving overseas is being debated these days. One way to turn this trend around would be to take actions to make imports more costly by imposing tariffs and quotas. Do you believe that this strategy will benefit the US citizens in the long run? What are the risks associated with such a strategy?
One of the most important issues involved with United States of America is outsourcing of jobs of United States of America by American companies to other countries because they are providing their services cheaply so this is is lowered by taking actions on making imports highly costly and imposing tariff but this will not be helpful in the long run because when we are importing higher amount of tariffs then it would mean that we are also so inviting other country to impose a higher amount of tariff on our goods and hence there will be large amount of trade barriers which will be inflicted in the global economy in which will not be beneficial for the American company & American investors and hence, this is a short sighted approach in order to quickly adopt to increasing of tariff rates so so rather than adopting to quickly increasing the tariff rates one should be trying to act in a productive manner.
The government should be trying to provide various subsidies to all these American companies who are outsourcing their jobs and they will be trying to provide lower cost of production and the lower taxation so that they are more inclined towards producing in American economy and that would be leading to generation of the jobs and they should be trying to provide competitive products by adaptation of lower prices so that their products are highly competitive with the imports and hence by adopting to competitive pricing strategy, employment could be generated and this problem could be solved to a certain extent.