The effects that tariffs, changing trade agreements
Reply to at least 2 of your classmates or your faculty member. Be constructive and professional
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Amber Pfeiffer
16 minutes ago, at 7:36 PM NEW
The effects that tariffs, changing trade agreements, and/or manipulating exchange rates can result in positive economic outcomes. According to York (2018), “trade allows people in different countries to specialize in what they do best, and then exchange physical goods, services, and financial assets across borders. But there are often misperceptions about the measurements that economists and policymakers use to track flows of trade (para. 12). When a country erects barriers to trade, it can cause prices to rise and resources can divert. Which in return can lead to a less efficient economy. The consumer then pays more and businesses to face a higher cost.
I agree with the tariffs in the fact that if the United States has a shipment sent to another country, they are able to bring back products from that country. In return, they sell to consumers in the United States and make a profit. Which leads to jobs and a more efficient economy. According to York (2018), “The balance-of-payments system is simply an accounting identity; the current and capital accounts track flows of goods, services, and financial assets between people, and they move in the opposite direction of one another” (para. 19).
York, E. (2018). The Impact of Trade and Tariffs on the United States. https://taxfoundation.org/impact-of-tariffs-free-trade/
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Michelle Chevalier
2 hours ago, at 5:44 PM NEW
Tariffs affect everything. Prices go up when tariffs are high. The availability of products that we normally need, and use become few. As a result, the unemployment rate increases, workers do not make as much money, and fewer products are available. Everything is affected. Many economists believe that tariffs have a negative impact on the trade balances of the country. I totally agree with that statement.
Trade agreements, however, have a positive effect on U. S. trade balances. Trade agreements with other countries increases trade surplus as well as reduces the trade deficits of that nation. Economists believe that trade agreements can have a negative impact on trade balances. I somewhat disagree with that aspect. I personally think that agreements will have a positive effect on the countries involved and that trade practices would be respected. Well, hopefully.
Supply and demand are so impactful on the currency of a country. Just recently during the pandemic, the demand for certain items were great. The supply was scarce. This was globally. So, the trade balance was affected. All countries were experiencing the same. The demand for paper items such as paper towels and toilet tissue were to the roof as well as cleaning products. Our demand changed. Whatever good be imported from another country or countries was absolutely done. Whatever we could export was done as well but the trade balance was not necessarily what it had been.
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