Do political relations affect international trade?

BUS I 605 – MODULE 5 WEEK 5 — REPLY TO DISCUSSION’S BY Rio Sarmiento, Natalie Burke, Rodrigo Gomez
WRITE 1 PAGE (250 WORDS) EACH FOR EACH DISCUSSANTS ESSAY. THERE ARE 3 DISCUSSANT ESSAY, SO YOU WILL WRITE A TOTAL OF 3 DIFFERENT ESSAYS
Use APA 7th edition. Avoid the use of direct quotes. Paraphrase and cite your sources instead.
DUE DATE: JUNE 11
(1) Natalie Burke—
Discussion Thread: Political Forces That Affect Global Trade
Inflation, Political Division Put U.S. in a Pessimistic Mood, Poll Finds
Adamy (2022) discusses how Americans feel pessimistic about the economy and how the nation is divided on essential values. Bakker et al. (2019) mention how economic growth is based on labor and capital inputs. The survey found that people are also pessimistic about the nation’s political system. Adamy (2022) presented some of the results of the study; 83% of respondents view the economy as poor or not so good. 35% of respondents are not satisfied with their financial situation, and 38% said their financial situation had worsened in the past few years. Adamy (2022) mentioned how results say that high inflation drives the poor economy. The unemployment rate is at 3.6%, close to a half-century low. Most respondents said it is easy to find a new job with the same salary and benefits. Tang et al. (2022) talk about how just in April 2020, the unemployment rate peaked at 14.8%. Adamy (2022) explains that Democrats control the White House and Congress and how the economy is usually the top issue for voters when considering elections. The voters typically hold the party in power accountable for the economy’s problems and high inflation that has made housing, groceries, gas, etc., significantly more expensive. Winter (2020) talked about how political determinants’ impact determines the economic direction. When 911 happened, the United States came together and became the most unified as ever, but when COVID-19 happened, the world became the most divided. The pandemic caused the world to isolate itself from each other, which has caused the world to become divided into all sorts of issues. Some of the issues that divide the world are whether you should or should not take the vaccine; in the beginning, people were arguing whether COVID-19 was real or not. 64% of respondents emphasized how platforms like Facebook and Twitter are more harmful to people than helpful.
References
Adamy, J. (2022). Inflation, Political Division Put U.S. in a Pessimistic Mood, Poll Finds. The Wall Street Journal. https://www.wsj.com/articles/inflation-political-division-put-u-s-in-a-pessimistic-mood-poll-finds-11654507800?mod=politics_lead_pos5 (Links to an external site.)
Bakker, G., Crafts, N., & Woltjer, P. (2019). The Sources of Growth in a Technologically Progressive Economy: The United States, 1899–1941. The Economic Journal: The Journal of the British Economic Association.
Tang, S., Horter, L., Bosh, K., Kassem, A. M., Kahn, E. B., Ricaldi, J. N., Pao, L. Z., Kang, G. J., Singleton, C., Liu, T., Thomas, I., & Rao, C. Y. (2022). Change in unemployment by social vulnerability among united states counties with rapid increases in COVID-19 incidence
Winter, S. (2020). “It’s the economy, stupid!”: On the relative impact of political and economic determinants on migration. Population Research and Policy Review.
(2) Rio Sarmiento –
Discussion Thread: Political Forces That Affect Global Trade
Political Forces That Affect Global Trade
As globalization increases as time goes on, international business becomes more common and influential in today’s global economic health. International trade allows countries to have access to other services and goods that are not accessible domestically. It is important to note that various factors affect global trade such as socio-cultural, geographic, economic, and political forces. Companies engaging in global trade must conduct thorough research to ensure these factors are being taken into careful consideration to ensure success across borders. One political factor a business leader must assess when conducting global trade is to determine the type of economic system a county builds its political choice. Different types of economic systems include market economy, socialist economy, communistic economy, or mixed economies of the aforementioned. By evaluating the types of economic systems, business managers can discern private property and contract rights and adjust their processes as necessary (Kahiya, 2020). Another political force that business managers need to take into consideration is the type of governmental systems associated with the nation in which they are planning to operate. The type of government such as democracy, republic, monarchy, and communist, will provide insight, guidance, and a set of laws to abide by when operating in a chosen nation. According to a recent study, businesses that conduct multi-level analysis and research to understand a host nation’s laws to ensure legal compliance is more likely to succeed in the survival of the business (Audretsch et al., 2019). It is also imperative for business leaders to identify and understand the current political stability of the country such as the attitude of political leaders to foreigners and foreign trade or the level of state intervention in the economy for foreigners to enter a foreign market. Ultimately, business managers must acquire enough knowledge to have an informed decision when operating globally. Proverbs 11:14 emphasizes the importance of seeking knowledge as it states, “Where there is no guidance, the people fall, but in an abundance of counselors there is safety” (English Standard Version).
References
Audretsch, D., Belitski, M., & Desai, S. (2019). National business regulations and city entrepreneurship in Europe: a multilevel nested analysis. Entrepreneurship Theory and Practice, 35(5), 727-731. doi:10.1177/1042258718774916
Kahiya, E. (2020). Context in international business: entrepreneurial internationalization from a distant small open economy. International Business Review, 29(1). doi: 10.1016/j.ibusrev.2020.101621
(3) Rodrigo Gomez—
Discussion Thread: Political Forces That Affect Global Trade
Buy American Rules Hurt More Than They Help
In his article, Millshap (2022) discusses that under HB 619, a proposed law in Florida, all construction, maintenance, and remodeling projects in the state must use steel or iron produced in the U.S. The bill may seem patriotic, but it will result in increased costs for taxpayers, slow American innovation, and reduce America’s influence abroad. By enforcing ‘Buy American’ rules, local companies are protected from international competition, resulting in higher prices now and lower quality products in the future. The ‘Buy American’ regulations present challenges, and even once implemented, how are we sure that the end-product is composed entirely by US-made materials? Whitten et al. (2020) explain that trade barriers, both tariffed and non-tariffed, reduce economic efficiency. For Skonieczny (2018), political trade is primarily a matter of identities, and successful or unsuccessful economic legislation rests on plausible stories about trading partners and realistic depictions of economic conditions. Anderson (2022) remark that U.S. and Chinese businesses have been impacted by China’s regulatory changes, but protectionist trade policies implemented by the past administration and carried over by the current administration have severely limited the ability of the U.S. government to protect American businesses in China. There is no evidence on how the protectionist policies are helping the economy or consumers, but the policies are damaging US companies abroad. For Millshap strong international trade competition among domestically based and foreign-based producers is an alternative. Trade promotes individual liberty, encourages economic growth, stimulates innovation, and supports free markets and representative government. Kristen (2020) explains that trading relationships had a profound impact on the American Revolution, which was inherently material or ideological. No matter how we choose to look at it, American merchants rewarded British sympathizers, and trade between the US and Great Britain continued. Trade has been critical for the US, bringing prosperity, boosting economic growth, and helping American companies and consumers, it is important to understand the ‘Buy America’ policies, and look the ways to improve its enforcement, and at the same time, its implementation to support US manufacturers.
References
Anderson, S. (2022). America-first trade policies harming US companies in China. Forbes.https://www.forbes.com/sites/stuartanderson/2022/02/10/america-first-trade-policies-harming-us-companies-in-china/?sh=2e38ce1b736e
Kristen, F. A. (2020). Trade, politics, and revolution: South Carolina and Britain’s Atlantic commerce. The Journal of Southern History, 86(2), 446-447. DOI:
10.1353/soh.2020.0094
Millshap, A. A. (2022). Buy American rules hurt more than they help. Forbes. https://www.forbes.com/sites/adammillsap/2022/03/23/buy-american-rules-hurt-more-than-they-help/?sh=71ddadae65f6
Skonieczny, A. (2018). Trading with the enemy: Narrative, identity, and US trade politics. Review of International Political Economy, 25(4), 441-462. https://doi.org/10.1080/09692290.2018.1448879
Whitten, G., Dai, X., Fan, S., & Pang, Y. (2020). Do political relations affect international trade? Evidence from China’s twelve trading partners. Journal of Shipping and Trade, 5(21). https://doi.org/10.1186/s41072-020-00076-w

Last Completed Projects