On Imports and the Trade Balance

At the Cato Institute, director and global trade analyst Daniel Griswold writes that “the goal of US trade policy should not be to promote exports at the expense of imports, but to maximize the freedom of Americans to trade goods, service and assets in the global marketplace.”

Griswold writes on why exports are not the only stimulant for our economy, and why imports do not “subtract” from our GDP. He reminds us all what we first leaned in Economics 101: in calculating the balance of payments, that which flows out must flow back.

A common trap of protectionism is that trade barriers “restrict the healthy, circular flow of international trade in goods, services and assets”. The end result of protectionism is reduction of both imports and exports, thereby damaging domestic economies and weakening the market share for a country’s manufacturing sectors.

Read more in The Trade Balance Creed: Debunking the Belief that Imports and Trade Deficits Are a “Drag on Growth”, published April 11, 2011 by the Cato Institute. For more on Daniel Griswold, visit the Center for Trade Policy Studies

If you’re in San Diego, note that Griswold will participate in an international trade symposium at California State University San Marcos on Tuesday, June 21. Register here.

Google, China, Censorship & e-Commerce

In a recent post on Forbes.com, Andy Greenberg presented a timely and thorough explanation of all that’s at stake for the world’s largest online commerce engine, in the world’s largest country… much at stake for international business strategists who are advising their clients to enter China and tap the fast-growing middle-class consumer sector.

The U.S. government, advocating on Google’s behalf, is moving forward with a sound strategy: “…It is also becoming increasingly apparent that censorship has implications for trade between nations. A Google official in 2010 pointed out that free trade principles should clearly apply to the Internet…”

Who better to support in the fight for free and open trade than Google, who’s enabling businesses of all sizes and locations to build and sustain a global trade strategy?

Read more here: http://blogs.forbes.com/andygreenberg/2010/11/18/congress-commission-echoes-google-chinas-censorship-is-trade-barrier/?boxes=Homepagechannels

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