Free Trade System
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Throughout its history, the United States has supported the free trade system. Ideally, this system is designed to keep international trade open and to prevent governments from imposing restrictive tariffs or quotas on the importing or exporting of goods. Recently, however, there have been increased complaints among American politicians that some of our major trading partners are engaging in unfair practices. For example, some foreign firms have engaged in the practice of "dumping," in which goods are exported at a loss "in order to drive other products out of the marketplace" (Bonker, 1988, p. 32). Furthermore, some foreign governments have adopted policies which give an unfair advantage to the companies of their own nations. These governments often provide subsidies to companies that utilize aggressive exporting techniques. In addition, these governments often assist companies in a practice known as "targeting." In this practice, new and promising markets are identified in the world, and then "whatever action is necessary" is taken in order to seize them (pp. 34-35). Such practices create a threat to U.S. businesses which are bound by the ideals of international trade without government interference. As noted by Congressman Bonker (1988), such practices are unfair because our private firms simply cannot compete with a foreign firm that has the unlimited resources or its government behind it" (p. 35). The concept of free trade is important to U.S. national securi
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Asian trading bloc. Many people in America today feel that Japan's economic strength, as well as its utilization of unfair trading practices, are a threat to the current international order (Jackson, 1993, p. 26). It should be noted that trading blocs threaten not only economic interests, but also other areas of international security as well. In this regard, it has been claimed that regional trading blocs will create strains in international alliances and thus result in a lack of cooperation in efforts on important issues such as drugs, terrorism, the environment, and economic development (Garten, 1991, p. 228). Even the traditional alliance between the United States and Europe may be threatened as a result of future changes in trade practices. In fact, it has already been noted that U.S. exports to Europe are suffering as a result of increased trading among the European nations themselves; furthermore, there are signs that the United States is losing "political leverage in trade negotiations as a result of Europe's reduced need for American military protection" (Garten, 1993, p. 186).
Because of the upcoming changes, it is important that the U.S. government develop new policies for helping American businesses compete in t
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Some common words found in the essay are:
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Approximate Word count = 1466
Approximate Pages = 6 (250 words per page)
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