Author Question: What is a tariff? Why has the world economy moved from high tariffs and protectionism to lower ... (Read 88 times)

sammy · **on:** Jul 10, 2018

What is a tariff? Why has the world economy moved from high tariffs and protectionism to lower tariffs and nontariff barriers?

What will be an ideal response?

Question 2

What was Ronald Reagan's Strategic Defense Initiative? Do you think the U.S. government should implement such an initiative today? Why or why not?

What will be an ideal response?

krakiolit · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

An ideal response will:
1, Define a tariff as a tax added to the cost of imported goods that is designed to raise their price and thereby protect the country's businesses and workers from foreign competition.
2, Describe the increasingly interdependent nature of the global economy, and how tariffs erect a barrier to free trade between countries.
3, Discuss how agreements such as NAFTA and GATT have lowered barriers to trade and how countries now resort to nontariff barriers such as quotas, subsidies, and quality specifications to limit imports.
4, Observe how the global world economy is making concepts such as imports and exports increasingly difficult to define.For example, many businesses have companies in multiple countries.

Answer to Question 2

An ideal response will:
1, Define Reagan's Strategic Defense Initiative (SDI) as a proposed program that would create a space-based umbrella that would automatically protect the United States from nuclear weapons.
2, Argue for or against implementing an SDI-like program. Those in favor of such a program may note the importance of protecting the United States from nuclear weapons. Those opposed to such a program may note that such a program would be expensive, may not work (with potentially catastrophic consequences), and is not as necessary given the end of the Cold War.