Issues Related to International Trade

The first concepts that were raised in our discussion of International Trade were tariffs and quotas. These tools that are meant to make promote the sale of domestic goods can raise the price of a product or even worse spark a trade war between two or more countries.

We also discussed high corporate tax rates and the movement of companies to countries with lower tax rates, which affects our exports negatively and requires us to import a larger quantity of goods. The balance of imports and exports are important to maintain our competitive edge in the world trade market and uphold the value of our currency.

Another thing that must be considered in regards to international trade policy is the ethics of the countries that you are importing from. Some companies may have more relaxed environmental, health, and quality standards than your country and importing products from these countries may affect yours in a negative fashion. An example would be the recent panic caused by toys that were imported from China that were produced with paint that contained high levels of lead.

In the end, we all agreed that negotiating free trade agreements with countries that we import from is the most reasonable and effective foreign policy strategy. We must also conduct thorough research on the policies and manufacturing processes of the countries from which we import goods.