use your knowledge about trade theories and protectionism to explain and interpret the trade patterns of a country of your choice

Trade Theories and Protectionism : Trade Patterns of U .S

Introduction

Since the war , world trade has grown faster than world output and both have grown at sustained rates until the 1990s . One of the most obvious reasons for international trade is provided by the fact that countries cannot produce all the goods they need , or cannot produce them as efficiently as other countries . Hence , it pays a country to specialize in the production of some goods only . Specialization is undoubtly one of the bases for trade : countries specialize in the production of

certain foods , producing more than they need and exporting the surplus product which is not domestically consumed

In trading terms , the various theories of charring , indicator analysis cycle behavior , and waves may have more to do with how traders describe their actions that with their actual behaviors and understandings Trading theories establish broad principles , which identify and classify the rationale behind the need for nations to trade with each other in pursuit of mutual benefit . The United States is one of the prevailing countries in a global aspect these days hence , determining the style of the trade system they possess through the applications of theoretical principles that might enhance trade system knowledge of applications . In the course of this theoretical application , the primary country to be examined shall be the United States . What trade systems are they following and the theoretical frameworks they utilize

Discussion

Since the late 1970s , many Americans have seen the rising tide of foreign imports as a threat to the very existence of basic industries such as automobiles , steel , shoes , and textiles . Indeed , public opinion polls reporting increasing support for limiting imports of foreign products . Record deficits in the U .S balance of trade during the 1980s are helping to translate that support into action by bringing Congress close to enacting blatantly protectionist legislation . Even the Reagan administration , strongly committed to free trade in its rhetoric , has at times succumbed to the heightened pressure . During its first term , the administration persuaded Japan to limit exports of automobiles to the United States and agreed to tighten quotas on imports of textiles

The economic theories stress either trade-imperialism or capital-imperialism . The trade-imperialism theory emphasizes the need to find new colonies to safeguard trade (protectionism , and discover and exploit new natural resources . Many economists have decried the apparent drift toward protectionism . They tirelessly point out that U .S balance-f-trade problems have resulted primarily from a succession of record federal budget deficits that have drained private savings and have generated rising volumes of imports to meet domestic demands for consumption and investment

Protectionism clearly threatens this interdependence , and with it , much of the economic progress that has been rec throughout the world in recent years . At a minimum , raising U .S trade barriers would reduce the real incomes of American consumers , increasing the prices of both imported goods and the domestically manufactured products with which they compete . However , as with the theoretical framework of comparative advantage , which depicts...