POL 373 Chapter Notes - Chapter 2: Free Trade

• School: Miami University
• Department: Political Science
• Course: POL 373
• Professor: Rothgeb John

Document Summary

Strategic environment for the united states sets a global context of trade policy. Strategy refers to what threatens the united states national security. Competition refers to how other societies market product in the united states. The united states uses the carrot of the open markets and the stick of restricted access to american markets. Ideas about trade policy change with the environment. Consumers and exporters usually benefit from trade while local producers are usually hurt. Rivalries in the government usually refer to departments within the executive branch and the executive branch vs. the united states congress. United states trade has changed drastically over the past seven decades. Tariff: tax collected on goods entering the united states from other countries. This was a large source of funds for the federal government until passing the 18th amendment. Protective tariff: designed to raise prices of foreign goods so much that americans had to buy local products.