What can we do to preserve our current trade policy?
Responses
Hoff2000_264596
Nothing. Free trade can and is a good thing within common economic structures. Free trade with a country like Guyana would not be good for the United States. An American dollar, at the current exchange rate, is 200 Guyanese dollars. For the discrepancy this large in the value of currency free trade with Guyana would mean that our goods and services are prohibitively expensive for them while their goods and services and the labor provided to generate them are so inexpensive, regarding currency valuation, that our manufacturing would simply be moved there. We see this happen in regards to Mexico and China. The valuation of their currency is so low that it cost less to move manufacturing facilities to them and ship those products back to the market, from whence they came, for sale. Trade should benefit both countries. Having a single trade policy for a block of countries does not and cannot take into consideration the economy or economic state of each individual country and what would benefit it and the United States most. This approach is no different than stating you treat skin cancer, lung cancer, colon cancer and Leukemia all the same. The treatment might work very well for one and not at all for the other but it's easy to manage and distribute. This should not be how we look had trade deals. Negotiate them the best potential outcome for all parties involved.
Responses
Nothing. Free trade can and is a good thing within common economic structures. Free trade with a country like Guyana would not be good for the United States. An American dollar, at the current exchange rate, is 200 Guyanese dollars. For the discrepancy this large in the value of currency free trade with Guyana would mean that our goods and services are prohibitively expensive for them while their goods and services and the labor provided to generate them are so inexpensive, regarding currency valuation, that our manufacturing would simply be moved there. We see this happen in regards to Mexico and China. The valuation of their currency is so low that it cost less to move manufacturing facilities to them and ship those products back to the market, from whence they came, for sale. Trade should benefit both countries. Having a single trade policy for a block of countries does not and cannot take into consideration the economy or economic state of each individual country and what would benefit it and the United States most. This approach is no different than stating you treat skin cancer, lung cancer, colon cancer and Leukemia all the same. The treatment might work very well for one and not at all for the other but it's easy to manage and distribute. This should not be how we look had trade deals. Negotiate them the best potential outcome for all parties involved.