gb5 - Debates About Trade Two leading debates in the area...

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Debates About Trade Two leading debates in the area of free trade include whether trade deficits are bad, and whether today’s realities mesh with classical theories. The Wisdom and Ethics of Trade Deficits A country runs a trade deficit when it imports more than it exports, and it runs a trade surplus when it exports more than it imports. The United States recently ran record-high trade deficits. Some believe that running a large trade deficit is neither unethical nor unwise. Others believe that the United States should deliberately attempt to reduce its trade deficit, especially with China. It has become common for American politicians to criticize the large imbalance of trade between the United States and China. These politicians have suggested the imposition of protectionist policies, including tariff and nontariff barriers. For example, some politicians have threatened a 20 percent to 30 percent tariff on China imports to “correct” the undervalued Chinese yuan. The following are the major arguments in favor of the imposition
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This note was uploaded on 02/06/2011 for the course GEB 3373 taught by Professor Crum during the Spring '10 term at University of Florida.

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gb5 - Debates About Trade Two leading debates in the area...

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