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Microeconomics: ARRA & Buy American - Assignment Example

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However, fiscal spending under section 1605 of this act applies only to the American made goods, unless exemptions are made. Though the…
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Microeconomics: ARRA & Buy American
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Microeconomics: ARRA & Buy American

Download file to see previous pages... In turn, American companies face an increase in demand and can hire more workers. However, some of that increase in demand for workers is offset by a decrease in demand in the private sector due to the recession.
This provision also ensures that production and international agreements are preserved. Subsection (3) provides that heads of federal agencies or departments are entitled to waive this provision if deemed necessary. In case necessary products are not made in the US, they can be obtained abroad. Canada also remains as a partner under the WTO agreement between two countries (Government of Canada).
However, some companies might be opposed to this provision. Companies able to produce cheaply in the US will have an advantage over those that produce abroad, and then import. Government action will disrupt operations of private businesses. As a result, competition could eventually decrease in the US, harming consumers and ...Download file to see next pagesRead More
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