Research Proposal on "International Trade and Finance Evaluate the U.S. Trade Deficit W. China and Other Nations"
Research Proposal 4 pages (1236 words) Sources: 4
[EXCERPT] . . . .
International Trade & FinanceChina is the second-largest trading partner of the United States after Canada (Census.gov, 2009). This trading relationship has fundamentally altered the economies of both countries, as well as the shape of global trade itself. The nature of the trade is based heavily on the U.S. importation of low-priced Chinese goods from a wide variety of sectors. This has created a massive trade deficit between the U.S. And China, a situation exacerbated by historically low U.S. savings rates and historically high Chinese savings rates, along with the peg of the yuan to the dollar. There are calls, however, for this trade to be curtailed somewhat. Trade between the U.S. And China has resulted in a massive transfer of wealth across the Pacific. This has in turn had many negative consequences for the U.S. economy, including hundreds of thousands of lost jobs in manufacturing. U.S. firms complain that the cost of doing business is so low, that they could not compete even they paid their workers nothing. This raises the question, is protectionism warranted, to protect U.S. economic interests? It is fanciful to enact protectionist measures in tough times, and indeed this trend is increasing as the result of the global financial crisis (Evenett, 2009). However, this trend is wrong headed. This paper will show that protectionism hurts economies, even the workers the measures are designed to protect.
Ricardo
The foundation of international trade theory derives from David Ricardo's 1817 book On the Principles of Political Economy and Taxation. In this work, Ricardo outlined the theory of comparative advantage. All things being equal, he argu
download full paper ⤓
The Ricardo example was simple, devoid of taxes, to show the impacts of such trade without any barriers. From it has flowed our current model of international trade that has emphasized the removal of trade barriers. The massive uptick in trade between the U.S. And China, for example, began as a result of the removal of barriers between the two nations. The ascension of China into the World Trade Organization has further allowed the two countries to build trade linkages.
Protectionism
There are many arguments in favor of protectionism. These include national security interests, the infant industry argument and for the protection of jobs. U.S.-China trade, for example, has cost the American manufacturing industry hundreds of thousands of jobs. The cost for an hour of Chinese labor is substantially lower than for an hour of American labor. Land is relatively cheap in China compared to the United States. China backs their industries with low interest loans from their banks, and protects them from the adverse affects of currency inflation by wildly distorting the market for the yuan.
Thus, that the Chinese economy is growing at the expense of manufacturing jobs in America and other western countries is a point of policy of the Chinese government, and is evident in many of its tactics and economic development strategies. The approach of the United States is typically to promote free trade, a reflection of Ricardian values.
Protectionism in the context of the U.S. trade relationship with China is to protect the nation from the adverse impacts of trade with China. There are positive impacts as well, though. Trade with China functions in the way that Ricardo predicted it would, raising the combined production of the two countries to the betterment of both. Access to low-cost… READ MORE
Quoted Instructions for "International Trade and Finance Evaluate the U.S. Trade Deficit W. China and Other Nations" Assignment:
This Bulk of this paper must evaluate the United States trade deficit with China, and other nations. Research must answer questions - "Would the consumer public benefit by Protectionism" and "Would a protectionist policy protect U.S. jobs and markets".
How to Reference "International Trade and Finance Evaluate the U.S. Trade Deficit W. China and Other Nations" Research Proposal in a Bibliography
“International Trade and Finance Evaluate the U.S. Trade Deficit W. China and Other Nations.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/international-trade-finance-china/8581044. Accessed 5 Oct 2024.
Related Research Proposals:
Role of Private Investment on Economic Development in Iraq Literature Review
Role of Private Investment on Economic Development in Iraq
Private investment in developing countries
An overview on early Empirical studies
In 1980s, the developing countries encountered some increment in their… read more
Literature Review 40 pages (14411 words) Sources: 45 Topic: Economics / Finance / Banking
Financial and Monetary Economics Research Paper
Financial and Monetary Economics
Since the end of World War II the issue of floating exchange rates in regards to currency has been increasingly brought to the forefront. Part of… read more
Research Paper 8 pages (3006 words) Sources: 10 Topic: Economics / Finance / Banking
Pakistan Economic System Research Paper
Pakistan Economy
Currently there is a great deal of economic instability throughout the world. Emerging markets are particularly susceptible to experiencing economic instability when global economies begin to falter. Emerging… read more
Research Paper 16 pages (4110 words) Sources: 3 Topic: Economics / Finance / Banking
Barack Obama in Political Time Term Paper
Barack Obama in Political Time
Renowned expert named Stephen Skowronek's visions have basically changed our accepting of the American position. His "political time" thesis has been chiefly powerful, enlightening how… read more
Term Paper 12 pages (3373 words) Sources: 8 Topic: American History / United States
Future Wars of the Middle East Will Result Over Water Shortages Term Paper
Water in the Middle East
Governments around the world have a primary concern over water availability and the Middle East and North Africa are no exception. The thesis evaluates the… read more
Term Paper 75 pages (22307 words) Sources: 1+ Topic: Israel / Palestine / Arab World
Sat, Oct 5, 2024
If you don't see the paper you need, we will write it for you!
We can write a new, 100% unique paper!