Global Trade and the Impact of the American Dollar
Globalization and global trade have become the norm of American society and many other countries around the word. They both stimulate the economy in a variety of ways. They force economic growth to occur, create new jobs, cause prices on goods to fall, and overall they improve our standards of living. On the other hand globalization and global trade can hurt a nation economically, socially, and politically.
After WWII, the growth of the economy and the development of poor foreign countries created an open market for many U.S. manufactures and farmers. They benefited from enormous profits. I agree and disagree with some of the government restrictions that have been placed on global trading. For example, I feel that certain import restrictions are necessary for our economy. The tariffs that are placed on the imported goods help secure many American jobs. This is because the prices of imported goods are higher then domestic goods, resulting in more sales of the domestic goods. The downfall to this tariff is that billions of dollars are wasted every year by American’s.
It seems that many countries lack a balance of trade due to globalization. For example, the U.S. buys millions or billions more of goods from China than they buy from us. Our money is going out, but an equal amount is not coming in from China. This is because American’s demand the most current high tech products and are willing to pay a premium to import these goods, which does not happen in China. China has a lower paying economy so they can afford to make goods cheaper and faster than the U.S. Unfortunately, this causes many American’s to experience unemployment. Unemployment occurs when foreign countries begin manufacturing the same products as the U.S., except at lower cost. Therefore we import more goods, and buy less domestic goods.
In other countries it is common for industries to obtain subsidies form their government. These...
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