Equity of Trade Versus Free Trade Essay -- essays papers

Equity of Trade Versus Free Trade The U.S. has a huge trade imbalance with most trading nations. The imbalance is not in agriculture, although many food products -- both raw and processed -- enter the U.S. at prices below those for comparable U.S.-grown foodstuffs. To a large degree the imbalance is in manufactured goods. One reason is that many nations have lower costs of production -- based upon a lower standard of living, cheap labor, inexpensive raw materials, protective government policy, etc. Multinationals who have moved their plants to foreign locations enjoy the best of both worlds -- inexpensive manufacturing costs and unlimited access to the world's biggest consumer market, the USA. Our laissez-faire trade stance, when coupled with many nations' protective trade stances and the inherent disparity of living standards around the world, is proving to be a recipe for ever-increasing trade deficits. Exacerbating the situation, GATT and NAFTA are proving difficult to implement when other nations improvise p hony trade issues and drag their feet at every opportunity. Bottomline, the U.S. is having problems with free trade. There is an alternative to free trade. It's called EQUITY OF TRADE. It would work like this: Under equity of trade, if the nation or other trading entity in question wants to export some manufactured item or food product into this country, and if the item in question is priced lower than a comparable item manufactured or grown in the U.S., then the trading entity is required to pay a tariff (import duty) at the Port of Entry that equals the difference between the landed-price of the good and the average cost of a comparable American-made good. Example: A shirt made in Sri Lanka lands on U.S. shores with a cost of $15, while a comparable shirt made in the U.S. would cost $25. The foreign entity would then pay a tariff of $10 per shirt. However, instead of good ol' Uncle Sam pocketing the tariff income on behalf of the federal government (which it's not entitled to and which creates ill-will and does nothing to foster long-range, mutually-beneficial trading relationships), deposit the collected tariff monies into an interest-bearing trading account in a U.S. bank in the exporting nation's name (or company or any other entity). Then give the foreign trading entity 12 months to redeem the trade credit and accrued interest by purcha... ... up the habit (Roberts). The surprising thing is that these kids know that they are being influenced by cigarette advertising. If these kids know that this advertising is manipulating them, why do they still keep smoking? The ads are everywhere, especially in teen-oriented magazines, such as Rolling Stone and Spin. The ads also fuel some of the reasons the children gave for starting. They represent rebellion, independence, acceptance and happiness. These are all the things a young person, between childhood and adolescence, needs and desires. This type of advertising, on top of peer pressure, is the mystery behind the rise in adolescent smoking. How do we stop the future of America from smoking? Here are three things that the experts recommend. Try to convince your children that smoking is not cool. Talk to your kids at a young age about the dangers of smoking. Identify family members who smoke and ask them to stop (Thomas). Children are the most valuable commodity we are given in life. Let's try to educate them while they're young to be independent thinkers and to not be swayed by the tobacco companies who are trying to take advantage of their mind and body.