Question

1-do you think restricting the import of Chinese goods will offer an overall economic benefit to the US?

Answer 1

I do not think to restrict the import of Chinese good will offer overall economic benefits to the US. Importing from China results in the lower price of the imported goods in the USA. This benefits the US consumers as they are able to consume more of these goods and that too in a lower average price per unit. This increases consumer surplus. In addition, cheaper import from China provides cheap raw materials to various American firms which can increase competitiveness because of the lower price. These firms are then able to hire more workers which results in higher employment in the USA. In addition, allowing Chinese import also result in China allowing US firms to export in China. US exporters contribute to the GDP as well as employment in the US economy. Therefore, restricting the import of Chinese good will not offer overall economic benefits to the US.