You have been appointed as special assistant to president trump. you are too bri
ID: 1118608 • Letter: Y
Question
You have been appointed as special assistant to president trump. you are too brief him on a most important issue and problem affect international trade and the U.S economy. Choose an (1) the topic or problem (2) identify the issues related to this international trade problem (3) identify the pro and cons of the problem (4) identify the advantages and disadvantages of the problem (5) develop policy solutions and recommendations that the president should undertake (6) identify the future policy implications for the U.S economy.
Explanation / Answer
As a special assistant to Trump I will ask him to renegotiate the trade agreement with countries like India , Bangladesh , China, Ethopia etc.
President Trump pledged to make America great again . This can come true if we generate employment to our citizens . A large number of jobs in software industry are siphoned by Indians who are working on low wages . Because Indians are working on lower wages , wages in America are stagnant .
Similarly textile imports from Bangladesh , Eithopia are coming into America. These imports are eating ourjobs in manufacturing sector and thus reducing their contribution to the GDP.
Renegotiate the NAFTA trade agreement with Mexico because benefits to Mexico are more than America . We are losing our jobs to Mexico .
Advantage
* It generate employment in USA.
* It will increase output of American industries and thus contribution to GDP
* It will reduce. dependence on other countries
*It will increase savings. and investment in economy.
Disadvantages
* USA also exports to other countries and this will deteriorate their terms of trade with other countries
* America couldn't concentrate on industries in which it has comparative advantage and thus this would lead to wastage of resources with full gains.
Solution to these problems is renegotiate the trade agreement with focus industries in which US has advantages. Also use trade barriers to restrict cheap goods into entering US
This will generate employment , increase savings, investment, GDP growth rate ..
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