Case Study on United States Trade 2022

Running Head: Case Study on U.S Trade.
Case Study on United States Trade
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1CASE STUDY
Five U.S. government policies
Its federal government takes the actions of the Government policies of the United States
of America (Bradshaw, 2015). Five U.S government policies that affect trade with foreign
nations are:
 The General Agreement on Tariffs and Trade (GATT) act of 1947
 International Organic Trade Policy
 Antidumping and Countervailing Duty Laws
 The Generalized System of Preferences (GSP)
 The many trade that the U.S has with over 20 countries.
The goal of U.S policies on international trade are in place to protect America while
doing business with foreign countries. The main aim of the General Agreement on Tariffs and
Trade Act (1947) is to minimize the barriers, chiefly being tariffs that were averting U.S.
exchange with international countries. The GATT had several rounds of talks with different
countries regarding various trade disputes. This act was provisional and eventually led to the
formation of World Trade Organization. (DiMaggio, Nag & Blei, 2013). Antidumping and
Countervailing Duty Laws are a part of the Tariff Act and protects America from foreign nations
trying to undercut American manufacturers.
The Generalized System of Preferences was established to promote economic growth in the most
impoverished countries, and to teach them how to utilize foreign trade to grow their economy.
Three factors of inputs (also known as production) are:
1) Land

2CASE STUDY
2) Labor
3) Capital
If a business aims for the betterment of the efficiency of the factors of production, it
concludes that they can generate more stocks at a larger quality and conceivably at a lower price.
A rise in production leads to material growth as measured by Gross Domestic Product (GDP).
Enhanced economic growth give a rise to the standard of living in U.S. by minimizing costs and
increasing wages. In the last many years, automation of fracking has madeupgraded eradication
of oil designing the U.S. one of the world’s biggest oil makers. This wouldn’t have been possible
without labor’s mobility behind the process. Therefore, such factors of production plays acrucial
role in trade activities of U.S.
Distinguish between absolute advantage and comparative advantage trade theories and
give examples
Absolute advantage can be defined as the ability of a particular nation to produce a
product or a service in a chapter rate than any other nation. Whereas comparative advantage can
be referred as the ability to produce goods and services at lower opportunity cost in accordance
to the trade partners. It provides the company the ability to sell at a lower cost than the
competitors and realize stronger sales margin.
Basis: