• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discussion on - "Nations Demand US Drop Steel Duties". The Washington Post. 11 November 2003.

Extracts from this document...

Introduction

Economics Article #5 Aakash Dheer November 11, 2003 Syllabus Section: 2 Article Blustein, Paul and Weisman, Jonathan. "Nations Demand US Drop Steel Duties". The Washington Post. 11 November 2003. http://www.washingtonpost.com/wp-dyn/articles/A26379-2003Nov11.html Essence of the Story The article is about the pressure being put on the United States by various countries to get rid of the expensive duties (tariffs1) that have been imposed by the US on imported steel goods. The other countries, such as Japan, Italy, and China, are saying that these tariffs are illegal according to the World Trade Organization (WTO), as they limit free international trade in favor of increasing domestic sales. The lobbying by the other countries has had an effect on the WTO, as they recently ruled that the tariffs are indeed illegal and that the US should scrap them immediately to avoid retaliatory measures by the other countries. ...read more.

Middle

Before the tariffs were imposed, the market for imported steel in America was at equilibrium, as in Fig. 1. At equilibrium, the quantity demanded for imported steel is equal to the quantity supplied for imported steel at price PE (called the equilibrium price). In this situation, everyone who wants to purchase the good at price PE can get it and everyone who wants to sell the good at price PE can sell it. However, the tariffs have caused a higher price, and the quantity demanded will move from QE to QD, as in Fig. 2. This will also result in a higher quantity supplied, as less people will by the steel when the price increases. As a result, there will be more supply than demand, or a surplus. ...read more.

Conclusion

If he does lower the tariffs on imported steel, like he is being told to by the WTO and other countries, he will lose votes in next year's presidential election from major steel-producing states such as Pennsylvania and Ohio. However, if he does lower the tariffs, other countries will tax clothing, motorcycles, and citrus fruits, among other goods exported by the US, and Bush will lose votes in politically extremely important states like Florida, where citrus fruits are grown. The economy will also suffer because less people will buy American products. My opinion is that Bush should lower the taxes and risk one more term of presidency instead of international relations with important trading partners like Japan and China and risk increasing the national debt more than Bush already has. Tariffs - A list or system of duties imposed by a government on imported or exported goods. Word Count: 537 (553 including footnote) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    "the relevant provisions of the Agreement on Trade-Related Intellectual Property Rights"; and 3) "labelling requirements for environmental purposes".117 It goes on: "Work on these issues should include the identification of any need to clarify relevant WTO rules. The Committee shall report to the Fifth Session of the Ministerial Conference, and

  2. Comprehensive Anatomy of China

    less favorable consisting mostly of steep mountains with unforgiving climates; thus making it difficult to live in this area, which is reflected by the low population concentration figure of 26 individuals per square mile. To prevent further crowding in the east, the Chinese Communist Party instituted a policy in the

  1. The U.S. Steel Industry - analysis and recommendations

    steel production industry has gone from producing 37% of the world's steel to approximately 15%. Since 1960's, due to the increase in the use of plastics and the technological improvements in manufacturing, the growth in steel production has leveled off.

  2. The Nature of Demand for Shipping

    And this demand for shipping is mainly derived from two sources, the demand for the commodities for industrial utilisation and demand for those commodities for final consumption. As said before that shipping demand is an effective demand because the demand for the quantity of an economic good which can be

  1. Peoples' republic of China

    In the interest of common development, he called for the abolition of protectionism and of discrimination in international economic relations and trade (Meeting, 1995, p. 53). Scalapino (1995, p. 16) observed, however, the nationalism has indisputably triumphed over internationalism in China, where the country's leaders "pay formal homage to Marxism-Leninism,

  2. Generalized role of a purchase manager

    An example of a capability is the ability to bring a product to market faster than competitors. Such capabilities are embedded in the routines of the organization and are not easily documented as procedures and thus are difficult for competitors to replicate.

  1. Outline the issues under discussion at Cancún - Why did talks fail?

    This subsidy will mean that the developed countries are able to undercut the developing counties, and the 900million people around the world who earn less than $1 dollar a day and rely on farming for income. The most extreme example of an excessive and unnecessary subsidy is the US subsidy of its 25,000 cotton farmers.

  2. The demand for an international school in Hong Kong.

    Therefore, it seems that their objectives are more concrete and accessible. Their packaging is so successful that many parents value so highly on them. For Shatin College, its aim is different from the above two. According to their web page, their aim is to admit students who language or background makes it impractical for them to attend local Cantonese-speaking schools.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work