Is Free Trade Killing Theu.s Industries? Essay

Is Free Trade Killing Theu.s Industries? Essay

Length: 1215 words (3.5 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Is Free-trade killing the U.S industries?

As Trump is allegedly trying to force a high-percentage tarrif on the Chinese imports, and Bernie Sanders to oppose the former trade agreements with the Asia-Pacifics, international trade has became one of the most heated topics on the presidential political debate. Everything has its own good and bad, free trade is no exception.

On the brightside, in a perfectly competitive market, free trade maximizes economic efficiency, promotes economic welwares of both consumers and suppliers. While on the other hand, a country with a relatively cheap labor force, for example Trump’s favorite— Mexico, could substantially “steal” jobs from a coutry with a relatively higher cost of production.

Now before we analyze Trump’s argument, let’s take a look back at the benefits of free trade that are already widely accepted by the economists. First and foremost, total surplus of an economy increases regardless of the international prices of goods. (Producer surplus is the measure of the difference between the amount of currency that a supplier receives and the minimum amount of currency that the person is willing to sell. Consumer surplus is the measure of the difference between the the price of the good and the maximum amount of money that the person would be willing to buy). Since, when the world price is below the domestic price, and the world price becomes the new equiliburium price when international trade is promoted, the surplus domestic suppliers receive decreases by the exact amount of B as the consumer surplus increases by the amount of B and D, and the total surplus increases by the amount of D. On the other hand, when the world price is above the domestic price, the consumer surplus decr...


... middle of paper ...


... price of steel from Mexico is lower, would it be a problem for Americans to buy from Mexico? Of course, it is most certainly a loss to the American steel workers , but the U.S steel consumers would also benifit. If you look back on the graphs, you would find the situation quite similar to that of any free trade: The benefit from buying at a lower price would almost always outweigh the loss of the domestic steel suppliers. The mexico’s subsidy might sound bad to the American workers, but as the U.S gain more from the trade, the taxpayers of Mexico are the ones who share the tax burden. Thus the U.S can actually benefit from Mexico’s protective policies.
In conclusion, after thoroughly examining each and every possible argument, the free-trade is far from killing the U.S industry, and any form of political intervention could almost only happen with a greater cost.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Gloablisation and Its Affect on Business in Industries in Developing Countries

- Globalisation In this essay I would be examining how globalisation has affected business influence on industries in developing nations and what impact does is have on our environment. I will begin by briefly reintroducing you to what globalisation is and what changes in brings. Then I will move on to answering the first part of the question referring to a few resources and examples, during this discussion I will also state my opinion on this matter. The second part of the question will be answered in the same manner as the first one....   [tags: industries, environment, changes, opinion]

Better Essays
1324 words (3.8 pages)

Impact Of The On Secondary Industries On Tertiary Industries Such As Education And Finance

- Tertiary industry The answer is positive. Brexit will generate noteworthy impact on tertiary industries such as education and finance. Firstly, there will be a reduction of EU university students coming into the UK, and this will affect its economy as well as a position in the global society. Currently, the UK hosts over 120,000 students from EU, studying as a full-time university students. (BBC Active, n.d.) It is mainly because they only have to pay a small amount of tuition fee, by the virtue of the EU laws....   [tags: International trade, European Union]

Better Essays
870 words (2.5 pages)

Free Trade And Trade Agreements Essay

- Introduction Free trade is a policy that lifts all trade tariffs and barriers and thus encouraging the free movement of goods (imports and exports) between nations. Agreements to free trade establish free markets where countries can engage in trade in a free and conducive environment. This type of trade is made possible by free trade agreements made between countries. According to the International Trade Administration, these agreements help minimize barriers to exports form the US, protect their interests as well as enhance the rule of law in member countries....   [tags: International trade, Free trade]

Better Essays
2266 words (6.5 pages)

Essay about Financial Analysis of Bucher Industries AG

- Table of Contents 1. Executive Summary 2 2. Introduction 3 3. Background of the company 4 4. Financial Analysis 5 4.1. Financial Statement Analysis 5 4.1.1. Balance Sheet 5 4.1.2. Income Statement 5 4.1.3. Cash Flow Statement 6 4.1.4. Equity Statement 6 4.2. Ratio Analysis 7 4.2.1. Liquidity Ratio 7 4.2.2. Profitability Ratio 8 4.2.3. Activity Ratio 8 4.2.4. Coverage Ratio 9 4.2.5. Other Ratios 9 5. Future Outlook (2014-2015) 10 6. Reflective report 11 7. Conclusion and Recommendations 12 7.1. Conclusion 12 7.2. Recommendations 12 References 1. Executive summary Analyzing financial statements is an important part of decision making because valuation of profits and losses statements are...   [tags: Bucher Industries AG]

Better Essays
2357 words (6.7 pages)

Enager Industries, Inc Case Study Essay

- History Enager Industries, Inc. (“Enager”) is a young company with three major divisions: Consumer Products, Industrial Products, and Professional Services. The oldest division is Consumer Products and it designs, manufactures, and markets household items that are primarily used in the kitchen. The Industrial Products division manufactures one of a kind tools that are made to order that meet a company’s required specifications. Lastly, the Professional Services division provides land planning, landscape and structural architect, and an engineer-consulting firm....   [tags: Enager Industries Case Analysis]

Better Essays
858 words (2.5 pages)

Essay about Overview of Industries, Trade and Commerce of Portugal

-  Portugal industries:- Industry (including construction, energy, and water) employs about one third of the labor force, and its contribution to the national economy has grown significantly in recent decades. It accounted for 29% of GDP in 2001. Industrial production in 2001 had maintained a 2.6% growth rate over 2000. Portuguese industry is mainly light; the development of heavy industry has been hampered by a shortage of electric power. Textiles—especially cottons and woolens—are the oldest and most important of Portugal's manufactures....   [tags: Portugal, production, economy]

Better Essays
2402 words (6.9 pages)

Monopolies in the Market Place: Example of the Telecommunication Industry

- Federal Regulations on Trade Traditionally many utility industries have been comprised of monopolies. These natural monopolies exist for a number of reasons. Monopolies in the marketplace create great inefficiency, and thus are very undesirable. It is for that, and many other reasons that regulation was thought of as a solution to the monopoly problem. Regulation was not just used to overcome such great inefficiencies created in a monopolistic market, but was also used to supply consumers with necessary goods....   [tags: Industries, Trade]

Better Essays
592 words (1.7 pages)

Cooper Industries Proposal to Acquire Nicholson File Company Essay

- Cooper Industries Inc.      Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor’s offer and Cooper financial data was decided....   [tags: Cooper Industries Inc. Case Study]

Better Essays
2708 words (7.7 pages)

Analysis of Industries Essay

- Analysis of Industries In today¡¦s advancing technology state, one must be aware of information management systems and how they are shaping lives. Many industries are involved in information technology, and it is that technology which enables them to survive. Five major industries are health, services, manufacturing, finance, and retail. It is hard to say which one is affected more by technology because they all are in their own individual ways. The topics of IT they all share, but the way that information technology is used and introduced in each industry makes them different....   [tags: Technology Manufacturing Industries Essays]

Free Essays
3529 words (10.1 pages)

Analysis of Cooper Industries Essay

- Analysis of Cooper Industries OVERVIEW: Cooper Industries is a broadly diversified manufacturer of electrical and general industrial products, and energy related machinery and equipment. The company operates in three different business segments with 21 separate profit centers. These segments include electrical and electronic, commercial and industrial, compression, drilling and energy equipment. The product line is consisted of cheap fuses to $3 million compressor tribune sets along with products such as hand tools and light fixtures....   [tags: Cooper Industries Business Management Essays]

Free Essays
610 words (1.7 pages)