Question

When you have completed reading the article, answer the below questions. Answer the questions in your own words with a minimum of 400 words or 1 – 2 pages in length. You must use at least two credible sources (you may use your textbook as one of your sources). APA formatting is required when citing your sources.

• In the 1930’s, there were nearly 2,000 shoe factories in the United States, employing more than 275,000 workers. Today, 99 percent of shoes sold in the United States are made overseas, and U.S. shoe factories employ fewer than 15,000 workers. Discuss how might this be a good thing for American workers?
• The Obama administration argued that the TPP will “unlock opportunities for American manufacturers, workers, service providers, farmers, and ranchers—to support job creation and wage growth.” Explain how this could be a true statement?
• The AFL-CIO, a labor union organization, argued, “Unfortunately, it is becoming clear the TPP will not create jobs, protect the environment and ensure safe imports.” Explain what is meant by this statement.
• Does eliminating restrictions on international trade help workers and consumers in the United States, or does it hurt them? Discuss.
• President Trump has subsequently withdrawn the US from the TPP Agreement. What were his reasons for doing so? Compare those reasons to Obama’s argument for joining TPP. What is your opinion of who’s right? Defend your position with economic reasoning?

Answer 1

To answer it is a question having serious proportions.Through industrial expansion uemployment can be kept to its low and any economy can prosper in this way. In the earlier part of 20th century United states  was becoming a rapidly industrialized nation creating employment for many and more and more number of factories are being brought in. By the end of 2nd world war the US was a net exporter of goods with a surplus balance of payments and untill then gold standard was prevailing which led to most of the gold reserves being gone to the us. After the conclusion of ww2 delegates from all major nations assembled and entered into an agreement called the Bretton woods agreement removing the gold standard and adopted the dollar standard pegging their currencies to dollar in exchange for gold upon demand. Later President Nixon abandoned the standard separating dollar from gold. By that time USD has becoming the reserve currency. Demand for dollar prompted every country to either borrow dollars or earn dollars by exporting goods to the us.Also the cost of manufacturing goods overseas would reduce the costs by 80-85 percent which leads to cost savings driving profitability. But on the other side this leads to destruction of local industries and is creating unemployment for americans. It is a sword sharp on both side to be handled properly or else it would lead to disastrous situations.

TPP is an agreement between various countries bordering the pacific ocean, accounting for 40 percent of global economy was aimed at countering China's rising prominence in Asia. One main aspect of TPP is cutting down tarrifs opening the gates for global trade . Well this is not a good thing for the us as cost of manufacturing goods in us is very high due to currency costs and other factors compared to other nations . So this is a good news for consumers but not for the workers, manufacturers located in usa. Instead of employment creation, cutting down tariffs will lead to dumping of goods manufactured overseas which are much cheaper than american manufactured goods. This is a discouraging thing for american manufacturers and workers.

The motive behind international trade is that every country will not have everything required by them they have to get it from some other place which is quite cheaper. In a similar way removing barriers for international trade will increase competition among sellers and consumers are the biggest beneficiaries of this phenomenon.But cutting down tariffs deeply will hurt local industrial growth and is harmful for american industries. On the other hand lower prices would mean longer benfits to the consumers as a whole.

The reasons cited by President Trump were

• Reduction in employment
• Competitors exporting goods into us without any tariff and competitors making it difficult to export goods by us into their countries.
• TPP is an attack on american business as competitors are currency manipulators

Obama championed the cause of TPP for the following reasons

• Increase in employment opportunities
• Massive investments in manufacturing sector
• Improvement in exports as more people join the workfore

As per my opinion different view points have different answers but a balanced approach towards drafting policies would be beneficial to everyone.