Trade between the United States and other countries proves to be an interesting study. Legislation such as NAFTA has alleviated some of the import/export inequalities of trade, but not enough. Trade disparities exist between the U.S. and other countries. The U.S. provides some control over foreign businesses through requiring foreign business to abide by the same laws for sale and taxation that is levied on U.S. based companies. One example in the U.S. would be the ‘dumping laws’. These allow the U.S. government to penalize foreign companies for selling at too low a profit, thereby ensuring the competitive pricing of foreign and U.S. based products. Another example would be China’s restriction on foreign media. Although the WTO ruled that China should relax its restriction on foreign media, which has presented challenges for U.S. film companies, as well as the export of books, music, and other forms of entertainment, China as of the deadline had not complied with the WTO ruling. It is restrictions such as this one in China that hinders appropriate trade equity in other countries, and causes the problems between countries in trade agreements.
NAFTA has become a very controversial issue. What do you see as the pros and the cons of NAFTA? Was NAFTA a good idea based on your analysis? Why or why not?