US Trade Barriers and Globalization
Traditional international trade involves a complex system of trade barriers to ensure the protection of domestic industry and its workers interests. The trade impediments and subsidies include protective tariffs, import quotas, non-tariff barriers i.e. licensing, and export subsidies. Originally, a country’s economy acted independently of other nations. The growing trend ever since the establishment of GATT in 1947 is globalization. In globalization, a country acts as a part of a free trading community consisting of member nations around the globe. As a trading community, trade problems can easily be resolved through negotiations rather than a trade war (McConnell 104-105).The US government employs the use of protective tariffs and export subsidies to protect and aid domestic industry. The two types of tariffs used on imports are the Antidumping (AD) duty and the Countervailing (CVD) duty. These duties shield domestic industry from foreign competition. By raising the price of imports, domestic products become more attractive to the consumer, i.e. the phrase “Buy American!”. Export subsidies are government payments made to domestic producers. The payments allow lower operating costs, enabling producers to compete on the
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Some common words found in the essay are:
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Approximate Word count = 1439
Approximate Pages = 6 (250 words per page double spaced)
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