Submitted by: Submitted by tlp892277
Views: 293
Words: 259
Pages: 2
Category: Business and Industry
Date Submitted: 09/02/2012 12:36 PM
International Trade Debate
The strength of the dollar is different from when it comes to the global economy compared to the domestic economy. When it comes to the domestic economy, the dollar is still a dollar if the economy is strong or weak. In addition, if there is more money being printed, then the value of money depreciates. When it comes to the global economy, the strength of the dollar has more significance because the U.S. dollar may be worth less in one country and more in another. Benefits of a tariff or tax on a good are that it will raise the domestic price of the good, which will help the domestic seller make more money from the foreign buyer. A downside to placing tariffs on goods is that it makes the domestic buyer pay more and can put a limit on how much the domestic buyer can buy. Quotas have benefits and disadvantages as well. A benefit from placing a quota on a good is that it could create a surplus, but could only be for those who have the license to import the good. A disadvantage of placing a quota on a good is that it may raise the price on an item and could possibly put a restriction or restrictions on trade with other countries. Although there are benefits and losses to international trade when it comes to tariffs and quotas it still can help a countries standard of living in the trade is done properly and within the World Trade Organizations guidelines.