1. Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers?
By just purchasing products from countries with low-paid foreign workers and not producing your own goods for trade countries will become dependent on that particular country. Specialization allows countries to develop a competitive advantage on products they produce the best and outsource produces and services that they do not so well. This result is a win-win situation for all parties.
2. If our country can make everything better and cheaper than foreigners, why would we have any reason to be involved in international trade?
By becoming involved in international trade all countries involved will be able to their products created at a cheaper price. For example if the US produces steel at a cheap rate and Korea produces televisions at a lower rate than the US, by participating in international trade manufacturing cost decrease
3. Should we “buy American” instead of outsourcing trade and jobs to foreigners?
The slogan “Buy American” is seen by many as very patriotic and a way to keep jobs here in America for Americans, but from an economic standpoint it is not good business. This is known as protectionism and could lead to other nations doing the same to us, thus restricting other markets for our goods and services. Outsourcing has a negative connotation to most people. It is viewed as sending jobs to much cheaper labor markets like India and China and costing Americans these positions. Outsourcing will benefit all American consumers, who vastly outnumber the workers who become victims of cheap imports and outsourcing. This practice should be viewed as fair and open competition. This is a cost saving measure for corporations, enabling them to pass on lower prices to consumers, which far outweighs the effect it has on the labor market.
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