Question

How do international trade policies impact your life? Consider the following examples:

·         What consumer benefits do you experience as a result of international trade policies? (For example, consider the availability of a wide range of low-cost, high-quality goods and services which are produced in other countries, such as cell phones and flat-screen televisions.)

·         As a voter, describe your concerns regarding international trade, such as the politics of free trade versus protection. Do you think tariffs or quotas should be imposed on imported goods to provide U.S. producers an “even playing field”?

·         Finally, as an employee, describe your concerns regarding the loss of U.S. jobs, since international trade spurs job offshoring, and it also provides freer access to U.S. markets by foreign producers.

Answer 1

Answer : . By the international trade policies one country export the domestic products to other country. Now let the imported goods and services are highly qualified with low cost . As cost is low , the price of the products will be low . Let the imported products price level is lower than the domestic price level. In this case as a consumer I will buy imported goods and services because of getting higher benefits than the benefits of domestic products.

. As voter of the country I will prefer protection to save the domestic production firms. Because under free trade foreign country products are imported for which the domestic country firms face loss because of higher cost and low quality products than the foreign products. As a result many firms exit from the market. To save the domestic firms government should impose quota and tariff on imported products. As a result import decrease and domestic firms play on the field.

. As an employee I will be very concerned about the chances to lose my job because of free trade. By the free trade domestic market is captured by the foreign producers . As a result many firms leave the market. If my firm where I am doing job exit from the market then I will lose my job. In this case I suggest the country should stay away from the free trade.