Government Agencies

a. Definition of the key term Special government agencies for international care include the World interchange Organization (WTO), the North American throw overboard Trade Agreement (NAFTA), and the European Union (EU) just to name a few. Several countries created the WTO to monitor all the take around the entire terra firma while the NAFTA and the EU where created on to a greater extent of a regional take for promoting trade in those areas. The U. S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U. S. usinesses and their employees (Satterlee, 2009). b. Summary In his article, Get-Tough Policy on Chinese Tires Falls Flat, John Bussey sheds some fresh on to the tax that the U. S. enacted in 2009 on Chinese tire imports. The tariff was meant to limit the import of passenger and light-truck tires and help give a advertise to manufacturers and job creation in the U. S. As many of the opponents of t he tariff prove out, it has non added any substantial amount of jobs in the industry save has instead lead to higher sets due to the price of the tariff organism passed down to the consumer.In the first year the number of imports from China dropped nearly 35% but in reality it didnt increase manufacturing here in the U. S. , instead the business moved to Indonesia, Thailand, and Mexico. One tire shop proprietor argues that prices have also increased for the U. S. made tire as swell up due to those manufacturers using the cover of the tariff to raise their prices across the board. c. banter The U. S. International Trade Commission agreed with the complaint against China that was filed by the United Steelworkers union and recommended the tariff.The ITC was created to help stimulate economic opportunities for U. S. businesses which I am sure that they felt they were doing when they enacted this tariff but it has non worked and needs to be carefully thought thru before any extens ion. The prices of the tires have increased and no substantial amount of jobs has been added that can be tied back to the mandate of the tariff. The tires being imported from China were primarily lower-cost tires and U. S. manufacturers tend to focus more the higher-profit tires that dont directly compete with the imports from China.Why try to block the trade of something that is not directly competing with the bulk of your business anyway? Some batch are always going to want to buy cheaper things and blocking it does not make them want the more expensive thing. The consumer will look for something else homogeneous in price and if you do not provide it in that price range they will find it somewhere else just as they did in Indonesia, Thailand, and Mexico. d. References Satterlee, B. (2009). Cross Border Commerce. Roanoke Synergistics Inc. Bussey, J. 2012, January 20). Get-Tough Policy on Chinese Tires Falls Flat. Retrieved January 31, 2012, from The jetty Street Journal http//o nline. wsj. com/article/SB10001424052970204301404577171130489514146. html In His article, John Bussey discusses the tariff enacted by the U. S. International Trade Commission on the import of Chinese tires into the U. S. He helps us to understand the intention of the trade tariff, why it does not seem to be working and why the ITC has a big termination to make whether or not to extend it.