Another trade agreement threatened by Trump, the US and
South Korea Free Trade Agreement. Trump stated that the agreement needed to be
renegotiated or terminated. Trump seems to be staying true to his promises
about lowering the US deficit, he is being aggressive and that could be what
the US needs. He may be a little rude in his approach, although, his point is
being made. His step towards lowering the deficit is by redefining the trade
agreements he feels are not supportive of reducing America’s goods deficit.
Along with having “fair, reciprocal trade.”
Well the trade policies that Trump is enforcing is more towards the protectionist. That means he is trying to protect the local industries and encouraging them to grow. Reducing the trade deficit is good idea, but one must also look at the other picture. Does making export more than import really improves the standard of living of the people? As per different models taught in international trade, such as Recardian Model or Hecker Ohlin model states that trading may result in a winner or a looser. However the overall output produce will be more in trade than not doing trade at all. Due to our current global climate issues I believe that trading is more beneficial than not trading.
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