***This is a International Economics course*** Tariffs on imports from Mexico ar
ID: 1164729 • Letter: #
Question
***This is a International Economics course***Tariffs on imports from Mexico are believed to be necessary to protect jobs and wages of workers in the United States and will only have minor negative effects on other groups within the United States. Do you agree or disagree with this statement? Explain.
Your journal entry must be 200 words. No references or citations are necessary. ***This is a International Economics course***
Tariffs on imports from Mexico are believed to be necessary to protect jobs and wages of workers in the United States and will only have minor negative effects on other groups within the United States. Do you agree or disagree with this statement? Explain.
Your journal entry must be 200 words. No references or citations are necessary.
Tariffs on imports from Mexico are believed to be necessary to protect jobs and wages of workers in the United States and will only have minor negative effects on other groups within the United States. Do you agree or disagree with this statement? Explain.
Your journal entry must be 200 words. No references or citations are necessary.
Explanation / Answer
I disagree
Tariffs on imports from Mexico will have a huge negative effect on the different societies of the United States. Mexico exports a lot of manufacturing goods, it is able to do so because of the cheap labor available in the country. The labor in the US is very costly and producing these goods in the US will make these goods equally costly.
The actual comparative advantage in the US is within the capital goods. If we diverted our labor to goods and services where we don't have any comparative advantage then we will be losing on this front as well. These costly goods produced in the US will increase the cost of things and at a higher price, the consumption in the US will fall affecting the overall GDP and welfare in the economy.
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