Providence Working Waterfront Alliance

Rhode Island is the smallest state of America. Providence is the provincial capital of Rhode Island. The

official nickname is the Ocean State. Due to the geography factor of Rhode Island, the Port of Providence

is a important regional economic resource. In recently years, the economy of Rhode Island is not

optimistic. Rhode Island need trade to stimulate economic growth. Recently, "the City of Providence is

considering zoning changes that threaten the future success of Providence's working waterfront, a vitally

important regional economic resource". (Providence Working Waterfront Alliance) Many people

obviously unhappy with this change.

Providence's working waterfront is the major economic resource for Rhode Island. It provide hundreds of 

direct employment jobs and thousand of multiplier jobs. On the other hand, Providence's working 

waterfront is the major source of heating oil for Rhode Island. Protect working waterfronts is defiantly 

essential thing need to do. The government of Rhode Island need protect the Providence's working 

waterfront, also find a way to increase the trade to stimulate economic growth. The economic of Rhode 

Island should have a better future with the great geography environment.

International Factor Movements

This week, we talked about emerging economies and the effect that international factor movement has

had upon them. My country is Brazil. I will be cover the information about how trade has impacted the

economic conditions with Brazil.


There are top five emerging economies in the world; which are China, India, Russia, Brazil, and 


Turkey. "Currently Brazil's economy is considered as the 8th largest in the world. It is considered as 


one of the fastest growing nations in the world. Brazil's economy is mainly determined by the relatively 


free market as well as inward-oriented economy. The GDP growth rate is 5% approx per annum". 


(Incredible Diary, 2011)


Brazil total value of exports: $199.7 billion

Primary exports goods: transport equipment, iron ore, soybeans, footwear, coffee, and automotive.

Total value of imports: $187.7 billion

Primary imports goods: machiner, electrical and transport equipment, chemical products, oil, automotive

parts, and electronics.

In fact, Brazil joined in numerous of international economic organizations which would help it develop

the domestic economy. After that, Brazil had been increased the business transaction with hundreds of

trading partners. In nowadays, Brazil is a rising star in the emerging economies of the world.

US-Morocco Free Trade Agreement

The blog assignment is to discuss the positive and negative impacts of regional trade agreements this week. My topic is US-Morocco Free Trade Agreement. US-Morocco Free Trade Agreement is a bilateral trade agreement between U.S. and Morocco. It entered into force on January 1, 2006. The purpose of this trade agreement is going to eliminating tariff on more than 95 percent of all goods and services. This trade agreement is good for both of Untied States and Morocco.

"Since the entry into force of the FTA, the U.S. good trade surplus with Morocco has risen to $1.2 billion in 2009, up from $79 million in 2005 (the year prior to entry into force)" (United State Trade Representative, 2012). "Adding to the benefits provided by the FTA, Morocco's economy has been steadily growing at an increasing rate over the past ten years". (export.gov, 2011)

From the fact above, we can see the US-Morocco Free Trade Agreement can be used as a tool to develop trade in developing regions. The US-Morocco Free Trade Agreement will help develop the domestic economic for Morocco. Also, this free trade agreement will create numerous job opportunities for Morocco. It will be attract many investors to open business in Morocco due to the free tariff policy. On the other hand, the United States obtained a lot of advantage as well. The biggest beneficial owner was the agriculture department. The United States export agriculture product to Morocco a lot every year. The major product is corn ,wheat, and soybean. In addition, U.S. want to move forward a step to trade with the Middle East country through the US-Morocco Free Trade Agreement.

The International Monetary Fund

Firstly, sorry for doing this blogger so late.

I will talk about the International Monetary Fund this week. Actually, I have never heard IMF before. I learned some basic information about IMF from the class. This is a international organization aim to stabilize exchange rate and provide fund assistance for a country which need help."The organization's stated objectives are to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making financial resources available to member countries to meet balance of payments needs."(Wikipedia, 2012) The International Monetary Fund is a helper. The global economic integration won't be successful without this organization.

Recently, about 20 countries promise increasing fund to IMF for help improving the euro zone's debt crisis. China was the one of the country promise to increasing fund to IMF. Actually, China made this decision had a reason. Europe is the one of the important trade partner with China. Chinese government cannot lose this partner without any help. In today's global economic environment, help others is help yourself.

In fact, it is good for developing country to be involved in the World Trade Organization or any other international organization. Most international organization is going to help a country to improving the domestic economy. Those kind of international organization is aim to balance the world's economy. China got a large amount of benefit after join in the World Trade Organization. China became the biggest export and import country of the world, and the GDP was increasing so quickly. On the other hand, It was extended the job opportunities for China and developed the technologic level. 

The trade war

Chinese Tire Tariff and Chinese Chicken Feet articles are  both talked about the antidumping issues. 

In 2009, President Obama announced tariffs increased to 35% on tire imports from China. It's broke 

China tire producer's heart. President Obama decided  increased tire tariffs for protect the domestic relative 

tire industry. In fact, China become the main antidumping country of the world in recent years. Many 

country increasing tariffs to limit China both import and export product. Why China's import and export 

always are low price? Most of products that I have ever seen are made in China! Only because the cheap 

labor cost  in China? 

I realized that America people didn't ate chicken feet when I came to the United States. They think 

chicken feet are a lowly thing. However, most Asia people eat chicken feet, especially in Chinese 

mainland. We like to eat chicken feet because the meat on the bone are very delicious. Chicken farmers of 

America found that the chicken feet had a huge market value in China. In 2008, the U.S. exported $677 

million worth of chicken to China. Actually, U.S. exports chicken feet to China is a good thing for both of 

country. Nevertheless, it's ended by China imposed antidumping tariffs from 43.1% to 105.4% on 

imports of chicken parts in 2010. Some people thought the chicken feet event were the China revenge 

for the tire tariff of America. I think every country do the tariff adjustment because they are trying to 

protect their own economy. The trade war will never end between countries.  

Are all barriers on trade intentional?

Nations protect domestic certain industries by so many ways. Increasing tariffs is an main effectively
process from other countries. Protective tariff not only can reduce the amount of imports entering a country, also increase sales for domestic producers. On the other hand, nations like to use increasing
tariffs to solve the antidumping problems.

Indeed, there were some barriers on trade  were unintentionally. For example, war on terror is an terribly
negative unintentionally barriers on trade. The famous war on terror was 9.11 event ten years ago. 9.11
event created particular adverse effect to America economy. First of all, investors lost their trust for
America economy market. They thought America was not a safe place to invested anymore. In addition, the United States utilized a large number of domestic resources to the war against terrorism after 9.11 event. Then, Military expenditures and national debt of America has increased rapidly. The war on terror makes a heavy blow to America's economy.

In China, the war on terror occurred in the north western province of Xinjiang. The terrorists those who are fighting for an independent state was uighur separatists.  Uighur separatists keep separatism many years because they believe they are different between us. Uighur take different language and culture that make them special, but it's not means they are not Chinese. Uighur fought people who are not uighur, and vicious burned shops during the war on terror. This negative event created very bad impact for China economy. From ancient times till now, the only thing war on terror can gave us was painful.
Hope the war on terror won't happen again in anywhere.

Globalization drives changes for U.S. automakers

U.S. automobile industry have big three companies which are GM, Ford, and Chrysler. They are no longer monopolize the automobile market due to healthcare benefits negatively affects their comparative advantage. Comparative advantage is very important for a nation who should specialize in production of those goods for which it it relatively more efficient with a lower opportunity cost. However, the healthcare issues affects the big three automobile company lost their comparative advantage. 

Healthcare is a significant issue for each country, especially important for some countries who are pay close attention to personal benefit, like America. Every employee care about healthcare. A company have obligation to pay a portion of healthcare to their current employee. If a company doesn't make an acceptable profit for their current employee, it may negatively affect their comparative advantage from other aspect. 

America is a mighty country in economy, military affairs, politics, society, and environment side. Along with America's economy develop rapidly, the citizen of America have right to ask more benefit. However,  time has changed and the good old days are gone. If GM, Ford, and Chrysler want to compete with other foreign automobile companies, they have to shrink their labor costs, including retiree health care expenses; slash debt; terminate or sell low-performing brands; and decrease the number of models for sale and the number of dealers selling them. 

There are other policies that could be enacted to improve the comparative advantage of US car manufacturers. Because of the financial crisis in 2008, economy of USA was massive decreased. I think the government of USA should make some policies to support and help their domestic enterprise. The government of USA can pay the healthcare for each company's current and retire employee. Like China, the government of China took the responsibility for healthcare to each employee, but the government through take off a little portion of labor wage each month, then return the money when the employee are being retire. The US government can support the car manufactures retrieved comparative advantage through this way.