Question

Discuss a set of trade barriers that exist in the United States and the impact it has on our economy.

Answer 1

Tariffs are a type of excise tax levied on goods produced outside of the country at the time of import. They are intended to increase the consumption of goods produced at home, by increasing the price of goods produced from abroad. Tariffs generally result in consumers paying more for goods than they would otherwise have, in order to support domestic industries. While tariffs may provide some short-term protection for domestic industries which produce tariffed products by shielding competition, they do so at the expense of others in the economy, including consumers and other industries

Trade makes a nation wealthy and, conversely, export constraints make a country poorer. Trade encourages nations to compete in things in which they have a competitive advantage; that is, what they can manufacture at a comparatively lower cost of opportunity, and exchange with what they would otherwise have to sell at a higher cost of opportunity. That means nations generate more goofs and resources for less, and exchange them for other countries' goods and services, resulting in higher demand rates than would be possible without trade.

Trade clearly results in positive economic results, allowing people in different countries to specialize in what they do best and then to exchange physical goods, services , and financial assets across borders. But there are often misunderstandings about the measurements that economists and policy-makers use to track trade flows. The balance of payments system consists of the current account, calculating the movement of goods and services, and the capital account, tracking the flow of money.
Walking around an example of an importing and exporting company is helpful in learning how the balance of payments mechanism functions