Application Chapter 3 (3.1)

TRADE PROTECTIONISM

I.M. Windy is a candidate for the U.S. House of Representatives from your district. He just delivered an excellent speech at your college. He spoke at great length on the topic of international trade. His major points were:

1.. We need tariffs to:

* provide revenues

*protect our young industries

*make people buy at home because it is patriotic

*keep us militarily strong

*protect American workers and wages

*help us maintain a favorable balance of trade

*create a favorable balance of payments

2. We should eliminate embargoes (like the one against selling wheat

to the U.S.S.R. in 1979-80) because they accomplish little, but

we should keep quotas and tariffs.

3. The American standard of living would be greatly increased if we

eliminated foreign competition.

4. The tide of foreign goods washing across our nation should be stopped

at once. We are a self-sufficient nation that can stand alone without

trading with foreigners.

Do you agree or disagree with Mr. Windy? Evaluate each of the candidates major points by indicating whether you consider it valid or invalid. Justify your position, and submit assignment for marking.