February 3, 2012
U.S.'s Flawed, Outdated Trade Policy
Matthew Jensen, RealClearMarkets
Over the last several decades, the character of international trade has changed dramatically. Drastic advances in communication and information technologies have allowed businesses to slice the production process into pieces which are then located in their most efficient locations. Supply chains are formed that stretch across the globe, and individual parts, components, and even tasks, are traded from one country to another within these chains.
In his State of the Union Address, President Obama condemned this practice, saying, "It's time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America." More specifically, he wants to conduct industrial targeting, namely he will favor American companies, the...
TAGGED: Trade, David Ricardo, Matthew Jensen