Tuesday, February 19, 2008

Response to Articles

I thought the two articles we read in class were very interesting. The articles, especially the one about the World Trade Organization and China, showed that the trade tax in one country can greatly impact the economy of another country or several other countries. Since China taxed imported car parts and treated them as whole cars, then businesses are encouraged to buy parts made in China because they are cheaper. This causes the makers of the imported car parts to wonder if they should relocate to China and leave workers in America, Canada, and Europe jobless. Leaving workers unemployed also happens when General Motors relocates their plants to different cities. The workers are left jobless and they are not able to provide for themselves or their families. It also has a great impact on the communities surroundin the plants, which we saw in Flint. I understand why China had a high tax on imported car parts. They wanted to encourage local purchasing therefore help their economy. Also, I understand why GM relocates or closes plants. They want to decrease the cost of production and also increase profit. However, I feel that there is a solution out there that will benefit everyone and not leave numerous people unemployed.

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