pls reword 30% or under

As a business owner, you need to approach the issue of globalization and trade in context. With all the complicated tariff and nontariff trade policies, organizations, and government involvement, the important question to ask is why the United States maintains certain economic policies.

Consider the following questions:

· Research where you would find the U.S. international trade policies and their history as they apply to various industries

· Chose two industries, and focus on those.

The Industries I have chosen to focus on were the Automobile and the Jet industries.

· Do the economic trade policies today help or hurt business owners and laborers?

US free trade helps poorer countries U.S. free trade benefits poorer, non-industrialized nations through increased purchases of their materials and labor services by the United States. Economic benefits from international trade arise from the fact that countries are not all the same in their production capabilities. They vary from one another because of differences in natural resources, levels of education of their workforces, technical knowledge, and so on.

Without trade, each country must make everything it needs; including things it is not very efficient at producing. When trade is allowed, by contrast, each country can concentrate its efforts on what it does best. While corporate profits soar, individual wages stagnate, held at least partly in check by the brave new fact of offshoring -- that millions of Americans' jobs can be performed at a fraction of the cost in developing nations near and far.

Is the automobile industry protected?

No, Industry is truly protected but some industries such as the automobile industry has more relaxed policies and tariffs.

Is it considered an infant industry?

Though the automobile industry is one of the largest industries it is still considered to be in its infancy (Levinsohn, 2013).

What tariff policy is in place for automobile manufacturers?

Both sides have used their political muscle to influence the international auto trade. The United States currently imposes a rather liberal import tariff of 2.5% on all imported cars. Such a tariff is relatively low when compared tariffs in China, which exceeded thirty percent before its entry into the World Trade Organization and have only since been reduced to twenty-five percent (The World Bank Group, All Rights Reserved.).

What type of administered protection is in place, if any?

On December 11, 2008, the House of Representatives buckled under the automakers' demands, voting (largely along party lines) in favor of a $14 billion bailout. The next day, however, the Senate voted down the legislation. A week later, lame-duck President George W. Bush and Treasury Secretary Henry Paulson intervened.

Compare the automobile industry to the two industries you chose to research.

How could the state or local representative help or hurt a business owner in the era of globalization?

Instead, politicians from both parties keep insisting that they will solve all of our problems if we will just give them our votes. Meanwhile, American families continue to fill up their shopping carts with cheap plastic crap made on the other side of the world. Globalism is slowly destroying the greatest economic machine that the world has ever seen and most Americans don’t even realize it. Today, the U.S. government has surrendered massive amounts of economic sovereignty to global organizations such as the WTO, the IMF and the World Bank. The United States has also entered into a whole host of very damaging “free trade agreements” such as NAFTA that are costing our economy huge numbers of jobs. Our politicians always promised us that globalism would bring us to a new level of prosperity, but instead that “giant sucking sound” that you hear is the sound of the U.S. economy being hollowed out.

How did the policies for manufacturers of automobiles evolve?

GM probably has the widest variation in experiences and practices. Considering the Saturn Corporation experiment and the NUMMI facility (owned jointly with Toyota), GM and the UAW have gone farthest among the Big 3 in experimenting with very different models of labor-management relations (Irwin, 2006).

Influences do the following organizations have on business owners, and what is their history?

The World Bank

Provide low-interest loans, interest-free credits, and grants to developing countries. These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management (STWR.org, 2013). Some of our projects are co-financed with governments, other multilateral institutions, commercial banks, export credit agencies, and private sector investors.

The World Banks and IMF’s interrelationship, financial opportunism, corporate mandate and US backing is best exemplified by their economic occupation of Iraq (The World Bank Group, All Rights Reserved.). Since the occupation began, Iraq’s entire economy has been fashioned by the IMF and World Bank to suit (mainly US) foreign investors and corporate interests. The Paris Club of creditors, through the IMF, quickly approved the cancellation of 80% of Iraq’s debts, approximately $39 billion.

The IMF

The IMF's staffs of highly qualified professionals are dedicated to the goals of the institution to promote global economic growth and stability, and raise living standards and employment. In recent years the IMF has been vociferously backed by multinational corporate interests when applying for extra funding for expansion. This support was in response to the IMF bailing out big banks and foreign investors which had made bad loans to developing countries. For example, in 1995, the IMF gave almost $18 billion to Wall Street interests who stood to lose billions with the peso devaluation. It also bailed out foreign investors in Russia with an $11 billion package and orchestrated a massive bailout of the big banks that made bad loans to Asian countries in the 90’s.

GATT

The World Trade Oder was made to replace the General Agreement on Tariffs and Trade (GATT). The WTO fosters ‘free-trade’ between nations. It does this by liberalizing markets, which means ‘opening them up’ to global competition. The WTO clearly states that these rules, although binding on governments, are primarily for the benefit of the business community that produce, import and export goods and services (White, 2013). In effect, the WTO overrides a government’s sovereign right to regulate its economy, and places corporate interests first.

The European Union

The EU was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict. The result was the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Since then, a huge single market has been created and continues to develop towards its full potential.

NAFTA

This act decreed that goods could be produced in Canada or Mexico and sold to the United States with no import duties, whatsoever. No other sector was so profoundly affected by this act as the auto industry. In fact, automobile and auto parts trade make up 20% of all intra-NAFTA trade. The measure was both simultaneously a huge blow to American, industrial auto workers, and a huge boon for American multinationals who were able to utilize low wage Mexican labor, to produce products to be sold to the U.S. market. These plants, Mexican auto trade, with the American "Big Three" accounting for 75% of all exports, and 80% of Mexican auto imports known as 'maquiladoras', created a huge burst in job production.

The Doha Round

And Sen. Sherrod Brown (D-OH) observes in his book "Myths of Free Trade": "As the Bush administration has worked overtime to weaken environmental and food safety rules in the U.S., Bush trade negotiators are trying to do the same in the global economy.

"The lack of international laws for environmental protection, for example, encourages firms to go to the nation with the weakest standards."

Does NAFTA affect the automobile industry's decisions on what to do with labor costs? Capital costs? If so, how? Was this trade agreement good for the United States from an economic standpoint? Was it good for Mexico from and economic standpoint?

Many thinkers insist that the agreement has been mutually beneficial, saving tens of thousands of American jobs, mostly those producing parts to be assembled elsewhere. However, NAFTA remains among the most vehemently controversial economic agreements in U.S. history. Its opponents maintain that NAFTA has displaced 879,280 American workers, widened the income gap, decreased real wages for U.S. production workers, and irrevocably damaged U.S. workers ability to organize. They further assert that as America's trade deficit continues to balloon more and more jobs will be lost, as the domestic economy becomes entirely dependent on imports. Nevertheless, if current trends persist, American participation in the global economy will assuredly intensify before it declines.

"In Mexico, real wages have fallen sharply and there has been a steep decline in the number of people holding regular jobs in paid positions. Many workers have been shifted into subsistence-level work in the 'informal sector'... Additionally, a flood of subsidized, low-priced corn from the U.S. has decimated farmers and rural economics (White, 2013)."

References Euuopa Eu. (2014, 01 30). Europa Eu. Retrieved from Europa Eu: http://europa.eu/about-eu/index_en.htm I, T. (2007, April). Web.duke.edu. Retrieved from Web.duke.edu: https://web.duke.edu/soc142/team1/political_social.html Irwin, D. (2006, June 30). Nber.org. Retrieved from Nber.org: http://www.nber.org/reporter/summer06/irwin.html ITA. (2011, March 18). ita.doc.gov. Retrieved from ita.doc.gov: http://www.ita.doc.gov/media/Publications/pdf/aviation2005_final.pdf Levinsohn, J. (2013, June 20). deepblue.lib.umich.edu. Retrieved from deepblue.lib.umich.edu: http://deepblue.lib.umich.edu/bitstream/handle/2027.42/31151/0000049.pdf?sequence=1 STWR.org. (2013, November 15). STWR. Retrieved from STWR: http://www.stwr.org/imf-world-bank-trade/decommissioning-the-imf-world-bank-and-wto.html The World Bank Group, All Rights Reserved. (n.d.). WorldBank.Org. Retrieved 04 2014, 23, from World Bank: http://www.worldbank.org/en/about/what-we-do White, D. (2013, July 21). About.com. Retrieved from About.com: http://usliberals.about.com/od/theeconomyjobs/i/FreeTradeAgmts.htm