Write a evaluation of credible economists’ unbiased opinions on the benefits, costs, and results of current US trade and tariff policies. Complete the following in your evaluation:
o Evaluate how US trade policy changes in the last 2 years affect global trade activities by multinational corporations.
o Discuss credible economists’ opinions on the long-term effects of trade and tariff policies changes in the last 2 years.
o Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.
Consider the following:
o Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied.
o The term “trade deficits” is a misnomer. Every country’s trade is always in balance.
o Trade deficits do not mean the US no longer produces anything to export. The US is the world’s second largest manufacturer and the world’s second largest exporter of manufactured goods.
o Trade deficits reflect a strong economy. Trade deficits rise during economic expansions and fall during economic contractions. Unemployment falls as trade deficits rise and rises as trade deficits fall.
o Imports and exports are complements, not competitors. Both are necessary and both contribute to economic growth.
o Roughly one-third of all US imports and exports is trade between US multinational companies and their overseas subsidiaries.