There has been a great deal of discussion over the last year or so about international trade and tariffs. Select news, magazine, and/or journal articles related to one U.S. industry that faces global competition in our country. (Examples would be a steel, clothing, or food sector.)
1. Describe the industry – what is the product that the U.S. imports, who are the foreign and U.S. sellers, who are the buyers, how large is the industry, is it growing or contracting?
2. Explain who might gain from the tariffs and who might lose?
3. Discuss what happens to price and quantity when a tariff is imposed. How are consumers affected? How are U.S. and foreign producers affected? How might the effects be different if only one exporter faces U.S. tariffs?
4. What other policy choices might the government pursue other than a trade barrier to help workers adversely affected by free trade?
5. What might be the effects of retaliation? Explain.
6. Discuss what you have learned from this assignment and how this information may affect your behavior as a consumer.