The document discusses the author's views on U.S. international trade policy and its impact on the domestic economy. The author believes current policy has a negative effect by spreading U.S. dollars overseas and decreasing their value. Internationally-made vehicles also outsell American brands due to higher quality and reliability. However, the author acknowledges that imports benefit consumers and that personal income figures show trade may have a positive impact. Overall recommendations include increasing tariffs, limiting imports to reduce money outflows, and legalizing marijuana to boost tax revenue and reduce crime.

1. February 13, 2010 Micro Economics Cody Box
Microeconomics Panel Discussion Paper
Cody Box (2012)
I believe the current United States International Trade Policy is a negative factor that is
crippling our overall economic growth. The United States is the world’s largest trading nation.
Due to this fact, there are countless United States dollars all around the world.(1) This is a big
factor in why the United States dollar is losing its value. Since there are countless dollars spread
throughout the world in different countries, treasury bonds, and companies, the value of the
dollar is descending due to the large amount of them. It is easy to get hold of a dollar therefore it
will not be worth as much. For example, if you have a baseball trading card of Hank Aaron, and
there were only five of those cards made in the whole world than you have a card that is worth a
lot of money. High value!
The Current effect of United States international trade policy on overall domestic
company’s profit is negative as well in my opinion. The United States needs to find a way to
increase their quality of products so that one day we can lead the world again in production. For
instance, in the movie about paradigms, it discusses how during the sixties that Japan was a
cheap, low quality, and unreliable products. However, when the man ask the same group of
people what they would consider Japan today they replied: reliable, well built, high quality, and

2. February 13, 2010 Micro Economics Cody Box
trustworthy. Internationally made vehicles surpass American made vehicles in popularity. Top
companies such as Toyota, Hyundai, Honda, BMW, and Nissan sell more vehicles in the United
States than American made cars. A reason may be because they are cheaper, and seem to last
longer and have better quality than Ford or Dodge. In the 2010 consumer reports auto edition,
they picked the top ten all-around vehicles models based on their performance, reliability, and
safety. Out of the top ten, there were only two American made vehicles. The first American
made vehicle came in as the sixth best car in 2010. (2)
A few good points were made in class this week on how to increase the profits and how
to keep domestic goods here in the United States. The United States could implement higher
tariffs on imports, or on the other hand they could limit the number of products we import. After
all this is part of the reason our United States dollars are all over the world. This would keep
more and more of American money from spreading across the world and eventually leaving the
United States currency with little value. One idea was to give back to the companies that limit
their import number. For example, Company X imports two billion computers from Country X
annually. If Company X could limit their selves to one billion computers they receive from
Country X annually, than this would decrease the amount of money the American company is
giving to the foreign country. If companies were able to successfully do this and meet their
cutbacks than the United States government could give them a check at the end of the year to
reward them for their help. Some companies may use this extra money to produce their own
(domestic) computers and slowly step away from buying from Country X.
This contradicts my negative theory but makes a very strong point. A phrase that is
usually misinterpreted is that exports are good, imports are bad. The truth is very different as we
cannot eat, wear, or enjoy the goods we send abroad. We eat bananas from Central America,

3. February 13, 2010 Micro Economics Cody Box
wear Italian shoes, drive German cars, and enjoy programs we see on our Japanese TV’s. Our
gain from foreign trade is what we import. Exports are the price we pay to get imports. (3)
Another idea given was to legalize marijuana. I think this would be a good and profitable
effort to cutting back on the nation’s debt. Two things would happen. First, the crime rate would
decrease greatly because we would take drug dealers off the street. Secondly, we could sale
packages of marijuana in convenience stores and set the tax high. This would give money back
to the government.
The Current United States international trade policy on overall United States gives
personal incomes a positive view. Last December, personal income was increased by 0.4 percent
and disposable personal income also increased 0.4 percent. Also, goods producing industries’
payrolls increased 1.5 billion dollars compared to a past decrease of 2.5 billion dollars. Another
positive fact is that service producing industries’ payrolls increased 14 billion dollars. (4) Many
Americans are being hit with unemployment and pay cuts.
America is in a very bad state right now and needs to make certain cut backs and
changes. The people of America need to realize that the only way the economy will change is by
the people of the nation to start making changes there selves. For example, when you get your
tax return or money from the government, spend it! There is not one thing that will change our
economy but several things.
Sources

4. February 13, 2010 Micro Economics Cody Box
(1) http://en.wikipedia.org/wiki/Trade_policy_of_the_United_States
(2) http://www.consumerreports.org/cro/cars/new-cars/cr-recommended/top-picks/overview/top-
picks-ov.htm
(3) http://www.hoover.org/publications/hoover-digest/article/7125
(4) http://www.bea.gov/newsreleases/national/pi/2011/pi1210.htm