Question
Discussion 1 (2 recent references )
Trade policy in the United States is used to grow the economy and allow us to remain competitive in the market. One way this is done is by eliminating investment barriers. There are instruments used in trade policies such as tariffs and subsidies (Hill & Hult, 2019). I believe these instruments are in place to balance the economy. Trade policies are predictable and consistent, and this allows investors to evaluate risk (OECD, n.d.). If countries were allowed to charge a price at their discretion this could cause unbalances that will affect countries that have nothing to do with the actual trade policy.
I believe the interest of businesses and their employees should take precedent when it comes to creating trade policies. The businesses are the middleman between the consumer and the countries where the goods are being exported from. If the business is not benefitting more than the consumer then what would be the motivating factor for the business to enter into the agreement to trade with this country. The premise of trade policies is to grow the business, so it is in the best interest that the policy is tailored to the business and not the consumer. The consumer does dictate many things like if you should continue with the trade. If the consumer is not interested in products that you are having exported, then this may be a time when the interest of the consumer takes precedent over the business and the employees.
Discussion 2 (2 recent references )
When creating a trade policy, the interests of businesses and their employees should focus on the needs of their customers. Businesses must focus on what their customers need and want since they are how the business makes money (Hill & Hult, 2019). As a result, if businesses do not satisfy the needs and wants of their customers then they could endanger the ability for their businesses to grow and remain successful. Therefore, businesses must look at what their exposure to the foreign markets are such as if their business is reliant on the importation of different items from outside of the country. The business must look at what their customers do not want such as products and also if they do not want to buy items made in certain countries. For example, if the business is a foreign import business and their customers would like to buy quality items that are not made in China then the company should consider sourcing items from other countries that their customers are comfortable with (Hill & Hult, 2019). The business might consider importing items from Asia that are made in Taiwan, Vietnam, South Korea, and Japan; for their customers and if their customers are happy with the items then they might be willing to pay a slightly higher price for a better-quality item (Cho & Kang, 2001). Then later on once the business has a good procurement and sales strategy in place the business could try to improve the level of compensation for the employees. If the business has seen a large increase in sales and profits, then the business might be able to consider raises for its employees which could boost employee morale and result in better customer service in the future.
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