International Trade Debate

International Trade Debate - Protecting the income stream...

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International Trade Debate Tariffs and quotas are tools that the United States government uses to gain control over imported goods from foreign countries. The tools can be used to control trade that will favor United States manufacturers to protect the local economy. All counties have certain types of products that they put in place to enter into international trade that are different and benefit the other countries by the acquisition of these specialized service and products. The country that produces the goods has a higher benefit in the market because they can supply the demand. Tariffs and quotas are means that can be used to achieve a semblance of economic balance. The reason that goods and services can be controlled is by the import and export. The tariff or quota gives the domestic competitors for this product line an economic advantage.
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Unformatted text preview: Protecting the income stream for a given country is what the tariff and quota is used for. The home company gains revenues, but the home consumer pays a higher price for the products produced in this country. The loss for the tariff and quotas is the trade restriction that hurts the United States and world economies. Another loss is that it is not beneficial to the American public. It is only advantageous to the domestic corporation that produces competing goods. They can inflate their prices for like services and products as a result of the tariffs and quotas being in place. These tariffs and quotas artificially reduce the demand curve. International trade is an economic stimulator from the consumer viewpoint. Loretta Campbell 03/31/2011...
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This note was uploaded on 05/29/2011 for the course POS 110 taught by Professor Britt,j during the Spring '10 term at University of Phoenix.

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