Effect on international relations with the widespread use of tariffs Discussion.

TOPIC PROPOSAL WORTH 30 POINTS

 

1. Introduce Topic/Event
   1. What is it? (2 points)
   2. Why is it an important issue for International Relations? (6 points)
   3. Who are the major actors involved? (4 points)
      1. Are they states or other?
   4. How has this issue affected international relations to this point? (4 points)
2. Which four theories will you analyze (you must do realist, liberal and Marxist and then you must choose either feminist or constructivist)? Explain why you believe it will be most useful to consider these theories? (5 points)Effect on international relations with the widespread use of tariffs Discussion.

• Which level of analysis do you believe will be most useful when considering the event? Why? (4 points)

1. List at least 5 credible sources that you intend to use. (5 points)

Trade barriers, such as tariffs, have been demonstrated to cause more economic harm than benefit; they raise prices and reduce availability of goods and services, thus resulting, on net, in lower income, reduced employment, and lower economic output.

Since the end of World War II, the world has largely moved away from protectionist trade policies toward a rules-based, open trading system. This widespread reduction in trade barriers has contributed to economic prosperity in many ways, including large increases in trade activity and accompanying gains in economic output and income.

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Openness to trade and investment has substantially contributed to U.S. growth, but the U.S. still maintains duties against several categories of goods. The overall effective rate of these tariffs appears low, but varies widely across categories of goods. Some of the highest duties apply to clothing, apparel, and footwear; some of the lowest apply to aircrafts, spacecrafts, and live animals.

This paper provides a brief overview of tariffs, the basic economics of trade and barriers to trade, and explains why the trade balance shouldn’t be viewed as an indicator of economic health. Then the paper reviews the current United States Harmonized Tariff Schedule and recent developments in United States tariff policies.Effect on international relations with the widespread use of tariffs Discussion.

Overview of Tariffs

Tariffs are a type of excise tax that is levied on goods produced abroad at the time of import. They are intended to increase consumption of goods manufactured at home by increasing the price of foreign-produced goods.

Generally, tariffs result in consumers paying more for goods than they would have otherwise in order to prop up industries at home. Though tariffs may afford some short-term protection for domestic industries that produce the goods subject to tariffs by shielding competition, they do so at the expense of others in the economy, including consumers and other industries.

As consumers spend more on goods on which the duty is imposed, they have less to spend on other goods—so, one industry is propped up to the disadvantage of all others. This results in a less efficient allocation of resources, which can then result in slower economic growth. Tariffs also tend to be regressive in nature, burdening lower-income consumers the most.

Trade and the economy

Trade makes a nation wealthy, and conversely, trade restrictions make a nation poorer.

Trade enables nations to specialize in activities in which they have a comparative advantage; in other words, what they can produce at a relatively lower opportunity cost, and trade for what they would otherwise have to produce at a higher opportunity cost.This means nations produce more goods and services for less and exchange those for goods and services from other countries, resulting in higher levels of consumption than would be possible without trade.

Through this process, productivity increases as resources flow to the economic activities in which a country has a comparative advantage.This leads to employment gains where production is most efficient, though it can also lead to employment losses in sectors where production is comparatively less efficient—an outcome of which policymakers should remain cognizant. On net, though, trade results in higher levels of productivity, income, and output throughout the economy. And over time, increased trade has made the United States more productive and has contributed to large increases in Americans’ standard of living.Effect on international relations with the widespread use of tariffs Discussion.