Question

When should a country export goods and when should a country import goods

When do you think tariffs and or quotas should be put in place?

Do you think President Trumps strict trade policies will benefit the country and why

Answer 1

A country's trade is generally based on the comparative advantage which states that a country is exporting a commodity in which it has a comparative advantage and importing a commodity in which it has a comparative disadvantage. This means that a country is exporting the goods which can produced at a lower opportunity cost than the other trading partners and a country is importing the goods which can be produced at a higher opportunity cost than the other trading partners.

Tariffs and import quotas are put on exchange to check dumping and to secure homegrown businesses. Strict trade strategies will profit from multiple points of view. US has import/export imbalance with practically the entirety of its exchanging accomplices, it is immense with China. Hence putting taxes will assist US with narrowing down the import/export imbalance and in this manner current record shortfall. This will offer lift domestic producers both infant and experienced enterprises to create more to satisfy the need of US buyers. Yet, putting duties and quotas by US frequently face counter by its trading nations. Additionally buyers may wind up following through on higher prices.