Download Business Economics - International Trade Q&A and more Papers Trade and Commerce in PDF only on Docsity! Hanaa Humphrey BU224-05 Unit 2 Assignment UNIT 2 ASSIGNMENT Questions Before answering the following questions, review the Assignment Checklist below. Then, in a separate Word document, answer the following questions in a 3–4-page expository research paper: 1. How much does international trade affect you personally? Look at any 10 items around your home that you have purchased in the last year. Where were they made? How many were made in America, compared to how many were foreign made? What things does America export to other countries? What things does America import from other countries? How does what you have learned about Comparative Advantage affect this trade? International trade affects me in multiple ways personally. For example, the way that I communicate with my family and friends which is on my computer and my cell phone which was all made in China. The way that I fix my clothes whenever I need the sewing machine, which was also made in China. One of the other things as well is my car I drive which is a “Hyundai”, which was made in South Korea. Not many of what I have in my household, I can really say, was made in America. I can say what I am used to understanding about exports from the U. S, which has been somewhat of a conflict since Covid-19 and the switch between President Trump and President Biden…. but we will get into that late. The comparative advantage standpoint would relate to the way we as Americans help our country by effectively exchanging through the foreign trade with each country having its own leverage of resources that are copious and sells the products in and out with products being at a lower cost for the opposing country. 2. Currently there is a lot of talk among politicians about imposing tariffs on foreign made products imported into the U.S. and retaliatory tariffs imposed by foreign countries on U.S. made goods. What is a tariff? Who ultimately pays the tariff? Who gets the proceeds from the tariffs? What is the money used for? Discuss the advantages and disadvantages to all involved parties (American workers, American consumers, foreign workers, and foreign consumers) of tariffs on imports to the U.S. and retaliatory tariffs imposed by foreign countries on U.S. made goods. To begin all of this we have to understand what Tariffs are, which is, tax on merchandise imports and this is for the government to have a source of their income, and also to make sure that there is regulations and rules followed by the foreign trade. With that being said, we as the people are ultimately responsible for paying our taxes in order for us to get what we want. This is how the government get their income and the proceeds of the tariff go to them. While this helps with domesticated sales, this also helps for the foreign trade to successfully export products from country to country. It can also sometimes make some things go wrong like “retaliatory tariff”, which can actually be both countries that are involved put into a disadvantage because not only does this make it to where both countries can develop a bad relationship with their import and export trade but can also increase the prices for consumers even more. For example, there is a massive war tariff going on with China and U.S “U.S. importers absorbed more than 90% of additional costs resulting from the 20% U.S. tariff on Chinese goods, the ratings agency said in a report.” (Lee, 2021) There is also the fact that China is also absorbing most of the costs as well. This is literally effecting lots of American Business today which literally if you go into stores, you can hardly find anything that comes from China under $1 anymore.
