Question

Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country. It follows therefore that when any legislator or government official who promotes zero-tariff free trade policies, is by definition not acting in the public's best interest of the United States. Discuss this issue fully.

Answer 1

It is true but having zero tariff will have its own costs and benefits. At present we need to weigh both the costs and benefits also:

Now we will discuss both costs and benefits separately in detailed manner below:

COSTS:

--> Zero tariff clearly indicates that cheaper goods will be imported to US, the reason is public will demand foreign good and therefore it won't undertake the completely fresh investment.

--> If import bill gets increases then it will be bad for the Us economy itself and Increased import bill will reduces the US savings which will show impact on the investment.

--> Few of the US industries also will become uncompetitive.

BENEFITS:

--> US citizen can have goods at a very cheaper rate. Hence a good can be enjoyed by a larger section of the population which will increase the welfare among the marginalized and also poor.

--> US also can concentrate on the industries in which it will have a comparitive merit. Hence it will lead to the specialization of the trade by the US in the industries in which it will have a comparitive merit.