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Unformatted text preview: companies in the early stages of growth) from closing down entirely because of foreign competition. (Nickels, McHugh, and McHugh, 87) Back to being patriotic, we as Americans can not preach that our economy is great and fair and then put tariffs on goods to help ourselves out. The balance of trade would be affected also because of the fact that the demand for imported goods would decrease due to the high price after the tariff was applied. Japan, for instance, steadfastly argued that it had some of the lowest tariffs in the world and welcomed foreign exporters, yet for many years American businesses found it difficult to establish trade relationships with the Japanese. (Nickels, McHugh, and McHugh, 88) Even with low tariffs, the market is affected greatly which also then affects the balance of trade. Works Cited Nickels, McHugh, and McHugh. Understanding Business 7e. The McGraw-Hill Companies, 2004...
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- Spring '08