Question

Respond to the following in a minimum of 175 words:

• Discuss non-monetary benefits open trade has contributed to the world since the end of WWII. Provide at least 2 examples. Why do you think these are important?
• How have changes to US trade and tariff policies affected US trade with other nations? Consider recent (less than 2 years old) credible news sources to support your response.

Answer 1

Non monetary benefits of trade:

It helps exchange and seep in technology from developed countries to developing countries. Also production of goods takes place more efficiently and competition is high. With increase in trade and globalisation benefits trickle down to all the sections of society. These are important such that countries can import goods wherein the country does not have resources for or does not have the specialization.

Example US can import labour intensive goods as US has high cost of labour production. Whereas developing countries can import capital intensive goods when they dont have enough capital investment.

Changes in US tariff policy- in the wake of rivalry with China, US raised tariffs on Imports from China on goods such as Steel, Aluminium products, solar panel. Changes- has created jobs in steel, aluminium industries. But has also impacted negatively in sectors which used imported goods as inputs.