ECOCB/535: The Digital Economy

Competency 3 – Reflection
Competency 3 – Reflection
Assignment Content

Reflection
This reflection activity is comprised of two sections collectively totaling a minimum of 500 words. Complete your reflections by responding to all prompts. 

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Exchange Across International Borders
The success of an economy in effectively employing the four factors of production determines how well that economy performs relative to its potential and relative to other economies. 

Address the following:

Evaluate non-monetary benefits that open trade has contributed to the world since the end of World War II. 
Provide at least 2 examples of the above benefits, and explain why you believe each is important.
Analyze how changes to U.S. trade and tariff policies affected U.S. trade with other nations. 
Support your responses with recent (less than 2 years old) credible news sources

The Global Role of the US Economy
Consider that some politicians, labor unions, and special interest groups argue that U.S. trade deficits are harmful to the economy, and nations that run large trade surpluses with the United States are benefiting from unfair trade practices and agreements. These parties support increasing tariffs on imports and eliminating or rewriting trade agreements

Analyze 2 credible economists’ opinions on the effects of 2 of the following factors with respect to the total U.S. trade balance. Find 1 economist who is less concerned about trade deficits, who think they are less important, or that they mean something else is good (U.S. consumers have more disposable income for example). Then, find another economist who is more concerned (he or she may see a trade deficit as having adverse employment effects, for example). Weigh in their different perspectives, and state whether you agree or disagree with their assertions, providing the logic behind your thinking. The factors to analyze include:

Tariffs
Changing trade agreements
Manipulating exchange rates

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