International trade & decision making

Presidential Debates talked about how to revive our domestic production and create jobs.  Here are examples of  three industries where the US domestic producers are losing, or outsourcing by moving productions overseas. 

(1)   Shrimp industry:  about ninety percent of US shrimp consumption is imported from overseas.   The domestic producers made complaints that are standard when a US producer faces foreign competition, and the US Department of Commerce has approved protective tariffs against shrimp imports.  As a result, American consumers now will not be able to benefit from the lower cost of production from the low-cost shrimp producers from Asia or Latin America.

(2)   The US imposed tariffs about 27 percent on lumber from Canada. You would think this would hurt Canadian lumber producers, and it did.  But it also forced them to be more efficient, while the US lumbers produce at relatively inefficient mills. The result is that more US lumber mills have closed than Canadian ones.

(3)   The Auto manufacturing states in the upper Midwest region such as Michigan, Wisconsin, and Ohio have turned into crucial battlegrounds during the election campaign.  The US government accused China for unfairly subsidizing its car components industry, and then the US imposed tariff on car-parts imported from China.  China retaliated with imposing import tariffs on other goods that it imports from the US.  This dispute is currently being reviewed by WTO.


If you were an economic adviser to a Presidential Candidate, what would be your advice regarding trade, import tariff or quota, and how to revive the domestic production?  In giving your answers, please refer to the above industries. 


.  As a guideline, each of the 10 points will be derived from the following:


1. Post your answer (350 words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts

2. Write in correct grammar; any errors will translate to a deduction in points.

3. Check for the spelling; any errors will deduct points.

4. Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).

5. Offer a creative solutions in addition to the obvious socio-economic impacts of each topic, such as environment, politic, or other issues.  

6. Offer a future recommendation or alternative options for the future with regard to the topic in question.

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