Question

Instructions: Each student will write a fictitious memo to an elected leader or governmental official on a specific policy issue topic or institutional design idea of his/her choosing. The idea with this minimum 1000 word assignment will be to identify a specific policy problem in society OR institutional feature of American government that needs fixing and to consider different ways to fix the problem. Typically a student’s memo will be stronger and have more punch if the topic is very specific. For example, the topic of “public health” is too broad to get your arms around, so to speak, but “childhood obesity” is a specific niche within that topic for which a memo would work well. Similarly, “reform of elections” is too broad, while “Electoral College reform” is more specific. Your policy memo must have the following sections: (1) identify the policy/institutional problem that needs solving and establish the degree of the problem; (2) consider at least 3 alternatives to fixing the problem; (3) compare and contrast those alternatives to the problem; and, (4) pick the best alternative and explain carefully why you did.

Answer 1

Introduction:-

There is no doubt about the fact, that the United States has always been one of the best places to conduct business and has therefore been growing enormously when compared to developing countries. The dollar has seemingly become one of the biggest currencies in which international trade takes place, and has gained much importance after most of the countries across the world chose it as an international currency of choice.

However, the recent trends in which international policy of the United States is being hostile towards countries such as China and India could lead to serious damages for the country itself which is the reason the topic International Policy Decisions with China and India have been considered as topics for the memo itself.

Memo:-

Dear Senator,

This is to bring to light on the fact, that as our country is headed towards becoming one of the safest places of capital investment across the globe, yet the current administration is using policy tools against countries such as China & India which may in the long run be a problem to ourselves also.

The policy decisions have led to a trade war between the countries and could cause major damage to our country also. Imposing of taxes on Indian imports into the country and ending the preferetial trade status which had been given to them, could lead to problems in the long run.

India has long served our interests in business with regards to outsourcing of projects and the infomation and technology industry in the country has long grown and fulfils the business needs of many in our own country

Further, China has developed its production techniques in such a manner that they have become unavoidable for American companies to not be dependent on it for their production requisites.

Thus, imposing trade taxes and discouraging their imports could lead to repurcussions for our country which may lead our growth rates to fall and unemployment may rise due to the potential loss of business and trade which arises from our country.

China and India have the largest populations across the world, and regularly import goods from us and help us in the production of goods and services. A decision on taxing them beyond fairness would lead to counter measures by the country and an end to low cost of production and after sale services.

In line with the problems, as described above, i want to suggest alternatives to the problem of raising taxes and engaging in trade war with these countries which are as follows:-

• 1) Active Dialogue & Negotiation:-

Both China and India are on their path of development and socio economic growth. As a result, they are very sensitive to policy decisions made by the United States in their regards and are set to take countermeasures to trade barriers which the United States wants to put in. This may cause serious problems for our nation as described above.

An alternative to increasing taxes on products such as steel imports by 25% and engaging in constant trade wars with these countries is active dialogue and negotiation on mutually agreeable terms.

The United States has always been the pioneer of free trade and imposing curbs on imports from these countries is strictly not recommended. Sitting together on a negotiation table has worked wonderfully previously with Mexico and Canada which led to the formation of trade agreements between the three.

Thus, to prevent damage to the production sectors and the business outsourcing which goes to these countries, active dialogue and negotiation skills are required to prevent long term disasters which could lead to serious economic problems in the country.

This can be used by the United States as a platform to bring countries which have different interests together and find peace with international policies with one another through active negotiation.

• 2&3) Structural Industrial Reforms & Changes in Government Expenditure:-

As an alternative to imposing bans on China and India which is primarily because these countries are capable of developing products and services at half the cost, the country can focus on problems within.

The United States is a capitalist economy having enough capability of implementing industrial reforms which may take time but if developed properly can lead to it being lot lesser dependent for outsourcing needs of production and services on countries such as China and India. As a result of these reforms, the country could avoid imposing taxes.

Also as an alternative policy, the government can increase its expenditure on items such as production of iron and steel and other sectors involving business outsourcing so that it can protect its own interests in case of any counter measures.

In my opinion however, the best solution of resolving this problem, is via active dialogue and negotiation than just blindly putting bans, imposing heavy taxes and engaging in trade wars. These countries currently are in their development phase and may require active policies of protectionism for their own goods and services. Such problems are best solved by active dialogue, negotiation and entering into trade contracts with one another as in the case of USA, Canada and Mexico agreements on trade.

Hoping that you would take my suggestions into consideration for your decision making.

Yours Faithfully,

Name

Please feel free to ask your doubts in the comments section.