Protect Me? Essay -- Essays Papers

Protect Me?Ive decided to write my paper on protection policies associated with trade. I should let you know that Ive been rendition the book Trade Under Fire and I agree that trade restrictions overall cause more harm than good. Ill focus chief(prenominal)ly on American policies regarding import tariffs and the impact it has on domestic producers and the domestic job market. My paper will be delivered as followsBenefits from TradeImports and ExportsTariffs on ImportsThe Job shortenConclusionBenefits from TradeAs weve discussed in class, any time there is trade there are benefits. David Ricardo helped prove this with his Law of Comparative Advantage, which states Each province (involved in trading) should completely specialize in producing the good that it has comparative advantage in and then exchange the good with other countries to import goods it wants, if this is done each(prenominal) trading country gains from free trade. This makes sense and every model weve done in class shows countries that trade with each other increase their consumption possibilities. This electric potential increase in consumption is known as gains from trade. The gains from trade can be limited however by protectionist policies. These are policies put in address by governments to protect domestic firms from being hurt by free trade. There are numerous ways to enact protectionist policies for domestic firms. The main one Im going to talk about is tariffs (taxes). further first lets talk about the balancing act that takes place between imports and exports.Imports and ExportsIn the book Free Trade Under Fire Douglas Irwin discusses the mutuality (balancing act) that needs to take place between imports and exports. Basically, pr... ...cally been good for consumers and bad for firms. But when you factor in the job issue it frightens workers into thinking that if they dont stick with their firm and fight imports they wont have a job. Creating an compact between firms and labor against imports. Nobody wants to be unemployed. And being told that your job is obsolete but a different job that might pay more is on the way doesnt really cushion the blow of being laid off. But the overall picture (long run or long term effect) basically states that protection doesnt benefit the world overall. This is in my opinion the strongest case for free trade.ReferencesFree Trade Under Fire By Douglas Irwin Principles of Macroeconomics (Vijay Sharma) Notes by Jeff Maffitt multinational Trade (Steven Beckman) Notes by Jeff MaffittInternational Finance (Suzanne Uroz-Korror) Notes by Jeff Maffitt