Assignment 1: Discussion—Government Role and Trading Blocks

Research government role in trade and trade agreements using your textbook,  University online library resources, and the Internet. Respond to the following:

• Should governments promote or restrict international trade? Describe at least three ways in which countries can restrict trade. Irrespective of your answer, which position—promoting or restricting international trade—is most likely to find support as a national strategy? Why do governments commonly initiate policies that support both positions?
• Research one regional trading bloc of which the United States is a member. Describe when the bloc was constituted, which countries are currently members, and which products are included in agreements. What is the economic justification for this trade bloc? Do you agree with the U.S. involvement in this trading bloc? What does the U.S. gain or lose?

Write your response in 600 words or less.

Sample Solution

International trade has the potential to create economic benefits for countries, but governments may choose to restrict trade for various reasons, such as protecting domestic industries and jobs or promoting national security interests. However, governments can also promote trade by reducing barriers and creating favorable conditions for international commerce.

One way that countries can restrict trade is by imposing tariffs, which are taxes on imports. Tariffs can make imported goods more expensive and less competitive, protecting domestic industries. Another way is through quotas, which limit the quantity of imported goods. This can protect domestic industries from being overwhelmed by foreign competition. Finally, governments can impose non-tariff barriers, such as regulations, product standards, and…NEED A COMPREHENSIVE ANSWER? POST YOUR ORDER

Despite the economic arguments in favor of promoting international trade, political pressures often favor trade restrictions, especially during times of economic hardship or uncertainty. This is because trade restrictions can provide short-term relief to industries and workers affected by foreign competition, and such…NEED A COMPREHENSIVE ANSWER? POST YOUR ORDER