Question

4. In chapter 3, we learned that workers displaced by import competition are eligible for compensation through the Trade Adjustment Assistance program. Firms are also eligible for support through Trade Adjustment Assistance for Firms, a federal program that provides financial assistance to manufacturers affected by import competition. Go to http://www.taacenters.org to read about this program, then answer the following: a. Describe the criteria a firm has to meet to qualify for benefits. What amount of money is provided to firms, and for what purpose? Describe one of the success stories," in which a firm used financial assistance to improve its performance c. Provide an argument for and an argument against the continued funding of this federal program

Answer 1

a. As indicated by the site, manufacturers are able to get profits by the TAA if imports have added to decreases in their business and deals or production.

b. TAA offers 50/50 cost sharing of projects planned for improving a maker's focused position. TAA pays for half of the cost of these services, up to $150,000 in projects with a maximum TAA share of $75,000.

Success Story

Trager Manufacturing was moving from the import-swarmed rucksack market to better, single-tie errand person packs and lively workbags when John Tanner, organization president, saw a flier via the post office advancing Northwest TAAC.

Trager, established in 1914 in Seattle and one of the main staying external wear organizations as yet sewing in the city, had just set its methodology for endurance. Northwest TAAC's 50 percent match to pay for a name overhaul, showcasing materials and a public exhibition stall secured $20,000 of the $40,000 generally speaking expense. Tanner couldn't be progressively satisfied. "Organizations that didn't require another knapsack name are tuning in to our single-tie, dress-down message," he says. "We multiplied our record base in a year."

Roland Ramberg looked for help from Northwest TAAC in 1993 when Gear Works, his family-possessed modern rigging fabricating business in south Seattle, was attempting to pick up ISO 9000 accreditation, a global quality-confirmation standard. Clients were influencing Gear Works to embrace ISO 9000 gauges as outside contenders were underbidding the organization for contracts.

Northwest TAAC paid 20 percent to 50 percent of the different expenses for advisors and examiners for a procedure that cost Gear Works $150,000. "It positively helped remove the torment of usage for such an exorbitant undertaking," Ramberg says. "In the event that we hadn't had help, it would have taken us significantly more and we wouldn't have done it as forcefully as we did."

c. Adversaries of TAA would contend that the program is expensive. At the point when the greater part of the expense was authoritative and tasks related. Advocates of TAA would draw on the beneficial outcome the help program has on the assembling business and neighborhood economy.