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Should we continue to import goods from China - Research Paper Example

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There are valid arguments to be made on both sides of the debate over whether the United States should continue to import goods from Chinese producers. One perspective holds that individuals ought to have the freedom to choose between all available economic alternatives and to…
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Should we continue to import goods from China
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Should we continue to import goods from China

Download file to see previous pages... s second perspective is the thought that protectionism (not allowing imports from China) will bring jobs that have been outsourced and entrusted to China back to the United States, resulting in a vibrant, more productive economy.
It is a fact that nearly 200,000 American jobs have been displaced by Chinese imports (Scott) in Wal-Mart Corporation alone. Those who hold protectionism as the answer for creating jobs in America hold this example as an expression of an underlying truth: that imports need to stop in order for the economy to improve. However, what is the overall economic impact of saving these jobs? According to an OECD report, stopping imports from China will actually hurt the American economy, costing $2.16 for every $1 rise in tariffs and dropping world income by $0.73. When a country implements such policies, production does indeed come back to that country; however, since they cannot make those goods as efficiently, consumption decreases because prices go up. Less consumption means more costs and a return to the original problem.
From an economic perspective, the protectionist argument against importing goods fails. The opposite perspective, that individuals have the right to choose between all available alternatives certainly seems valid, particularly in response to the analysis that “open markets will be necessary for a sustained economic recovery” (OECD). Trade with China is mutually beneficial for both parties and should continue until it stops naturally.
OECD. "Trade and Economic Effects of Responses to the Economic Crisis." 2010. Organisation for Economic Co-operation and Development. ...Download file to see next pagesRead More
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