International Trade Debate

In: Business and Management

Submitted By lgallenberg
Words 292
Pages 2
The United States must place high tariffs and use quotas to restrict trade with foreign countries. The placement of high tariffs and the use of quotas will help strengthen the weak American dollar, raise and stabilize the economy. Our economy is at one of the weakest points it has ever been in history. If the American dollar were to collapse, it would completely destroy the global economy.
Our dollar is declining, as this happens it makes U.S produced goods are less expensive and become more competitive with foreign produced goods. In theory this helps U.S exports, boosting economic growth, but in the end we do pay for it with it higher oil prices during the summer months. When the dollar declines, oil producing countries seem to raise their prices, this is done since they know we depend on their oil and they know that we will pay for it.
A tariff is a tax on imports and a quota is a legal limit on the amount that can be imported. The benefits from tariffs would be increased revenue that would benefit the economy. The disadvantage to having tariffs would be the price increase on goods with the tariff in place. Tariffs can be harmful to those that impose them and those that have to pay them.
Quotas can beneficial by limiting certain imports in certain countries. The disadvantage to this is determining what goods to limit and to what quantity and the potential for increased smuggling of goods. .
Tariffs offer more benefits than quotas. Tariffs can help control the costs of products and goods. The United States should impose tariffs on all imports and impose quotas only were they are needed. Tariffs will help the economy recover and…...

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