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 security, because economic position is a vital factor in the current balance of global power. However, the threat of unfair trading practices has resulted in a great deal of talk among American policy-makers regarding protectionism, a practice which is contrary to the ideals of free international trade.
Another threat to America's economic position is being posed by the fact that the world is apparently being divided into regional trading blocs. Some political analy...