Author : Craig Kent Elwell
Publisher : Unknown
Page : 0 pages
File Size : 49,9 Mb
Release : 2001
Category : Balance of trade
ISBN : OCLC:48877996
Trade, Trade Barriers, and Trade Deficits by Craig Kent Elwell Pdf
International trade is a means to a higher standard of living for all trading nations. The post-war era has seen a rapid expansion of trade and the U.S. has been a major participant in this process both as a trading nation and as a leader in the steady lowering of barriers to trade worldwide. The significant benefit of trade does not come without disruption and cost, however. Gaining the benefit of trade and also treating those hurt by trade equitably is often a difficult public policy issue. There is recurring congressional concern about the effect of trade on U.S. economic welfare. Current issues include: "fast-track", steel dumping, export controls, and the rapidly growing trade deficit. This report provides a brief overview of the economic case for free trade, the economic perspective on common arguments for trade barriers, and the cause and economic significance of persistent large trade deficits. The economic benefit of specialization and trade is a fundamental aspect of economic life whether for the individual, region, or nation. Arguments for trade barriers come in many forms but none is on economic grounds greatly compelling. The trade deficit is not a necessary aspect of trade, nor is it caused by foreign trade barriers. The deficit is a means for the nation to spend beyond current production. It can confer significant benefits but at some level of cost. This report will be updated if developments warrant