Strong_reflection 3_class 4

docx

School

University of Phoenix *

*We aren’t endorsed by this school

Course

ECOCB/535

Subject

Economics

Date

Jan 9, 2024

Type

docx

Pages

Uploaded by amandanchris220

1 Reflection 3 Amanda Strong University of Phoenix ECOCB/535 Dr. Mohammed Miah November 12, 2023

2 Reflection 3 Exchange Across International Borders The success of an economy in effectively employing the four factors of production determines how well that economy performs relative to its potential and relative to other economies. Address the following:  Evaluate non-monetary benefits that open trade has contributed to the world since the end of World War II.  Provide at least 2 examples of the above benefits and explain why you believe each is important.  Analyze how changes to U.S. trade and tariff policies affected U.S. trade with other nations. Support your responses with recent (less than 2 years old) credible news sources. The four factors of production are described by economists as land, labor, capital, and entrepreneurship. The success of an economy can be graded based on these factors telling economists how well the economy is performing relative to the economy’s potential and relative to other economies around the world. Since open trade began after the end of World War II there have been non-monetary benefits. The main two benefits would be the access to a variety of goods and services through a global scope and the benefits of technology transfer. There are so many items that are native to a certain area or that are manufactured in a certain area. The use of open trade allowed these items to be shipped to other areas that normally would not have access to them. An example of a sources that is brought into the United States through open trade is petroleum gas. A resource the United States needs and would not have access to the amount needed. Petroleum gas is used for so much in the United States we do not manufacture enough to accommodate the people that live her. So, to have things function petroleum gas in needed to be transported in open trade. The other item that has helped the United States and we now have access to since open trade began after World War II is technology transfer. The ability to trade

3 technological resources and knowledge can be extremely beneficial, like when medical research, knowledge or treatments can be traded and shared through open trade. Other resources such as the ingredients that were needed for the COVID-19 vaccine had to be transported into the United States and all of this was possible because of free trade. However, whenever there are changes to the United State Trade and Tarriff policies it can cause a fluctuation in the items traded in the states. If the tariffs are raised outside companies may choose to not bring items in because the cost is not worth it with the increase in the expense.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 The Global Role of the US Economy Consider that some politicians, labor unions, and special interest groups argue that U.S. trade deficits are harmful to the economy, and nations that run large trade surpluses with the United States are benefiting from unfair trade practices and agreements. These parties support increasing tariffs on imports and eliminating or rewriting trade agreements. Analyze 2 credible economists’ opinions on the effects of the 2 of following factors with respect to the total U.S. trade balance. Find 1 economist who is less concerned about trade deficits, who thinks they are less important or that they mean something else is good (U.S. consumers have more disposable income for example). Then find another economist who is more concerned, (he or she may see a trade deficit as having adverse employment effects, for example). Weigh in their different perspectives and state whether you agree or disagree with their assertions, providing the logic behind your thinking. The factors to analyze include:  Tariffs  Changing trade agreements  Manipulating exchange rates When someone says the word trade deficit many Americans automatically assume it is a negative in the eyes of the economy. However, different economists have a different view on what having a trade deficit can mean to our economy. While the economists have valid points, they are on two different sides of the spectrum of what a trade deficit can mean to our economy. William D Lastrapes, Professor of Economics, University of Georgia, expressed his concept on trade deficits and the fact that they are not bad for America. He made the argument that when a country like China has trade surplus with the United State and now China has extra savings that needs to be invested to work. Per Lastrapes, A lack of productive investment opportunity in China can mean they look at a country like the United States to use their money. There are many

5 that disagree with Lastrapes’ opinion. They believe the United States should impose Tariffs as they did on tire and steel and discourage the trade deficits to support domestic producers. Ultimately, creating job opportunities for the United States. Besides tariffs, trade agreements also need to change periodically. Trade agreements normally create job opportunities and can help to grow the United States economy. Recently the United Staes made a deal with Canada and Mexico to change the North American Free Trade Agreement to help the United States manufacturing sector. Additionally, the United States can manipulate to make the currency weak because it can make more competitive on the international trade front. Doing this will make the United States more attractive being the lower price in the international market. Lighthizer, an economist and for United States trade ambassador, recently published an article for “The Economist Magazine” where he pushed about the reconsideration of tariffs to help with economic policy and important trade policy. Praising the strength of the United States dollar as a reason for consistent trade imbalance. Manipulating the exchange rate can reduce the deficit. Lighthizer also stated that international trade deals have and will continue to fail over the last three decades and should be reconsidered.

6 References McConnell, C. R., Brue, S. L., & Flynn, S. M. (2021). Economics . Reader. https://prod.reader- ui.prod.mheducation.com/epub/sn_0d605/data-uuid- f7548ad5360b491ca01dc63cf530f64f Nken, M., & Yildiz, H. M. (2022). Implications of multilateral tariff bindings on the extent of preferential trade agreement formation. Economic Theory , 73 (1), 301–347. https://doi.org/10.1007/s00199-020-01338-1 U.S. Bureau of Labor Statistics. (n.d.). U.S. Steel tariffs of 2002 . U.S. Bureau of Labor Statistics. https://www.bls.gov/opub/btn/volume-9/the-effects-of-tarifff-rates-on-the-u-s-economy- what-the-producer-price-index-tells-us.htm U.S. terms of trade with China up 6.7 percent from July 2021 to July 2022: The Economics Daily: U.S. Bureau of Labor Statistics (bls.gov)

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

ECO- 8-1.docx

Bus+441+-+Midterm+-+Fall+2023.docx

4-2 simulation Checkpoint.docx

MKT 414.12B Hwk 1.docx

econ4f03ass22022AG (1).docx

3E03_Final_20191__1_.pdf.pdf

Strong_reflection Final ECOCB535.docx

Assignment #1 (1).docx

Sample TEST 2.pdf

pre class quizz #5.pdf

Final Assignment 9.pdf

Assignment 11.pdf

Recommended textbooks for you

Principles of Economics 2e

Economics

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:OpenStax

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

Economics For Today

Economics

ISBN:9781337613040

Author:Tucker

Publisher:Cengage Learning

Survey Of Economics

Economics

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Cengage,

Essentials of Economics (MindTap Course List)

Economics

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning