Economics: Export Promotion Cabinet
Assume that in a recent State of the Union Address, the President of the United States announced the formation of the "National Export Initiative," which is an important endeavor that is necessary for long-term, sustainable economic growth for the country. The president's goal is to double exports within 5 years, which should reduce unemployment by adding 2 million jobs.
This is the first time in history that the United States has put a real focus on government-wide export promotion.
Since then, the president has signed an executive order that formed the "Export Promotion Cabinet" within the presidential administration. The Department of Commerce is an important player in this initiative, and it is charged with making sure that U.S. businesses can actively participate in international markets by increasing their exports of goods, services, and agricultural products.
Part 1
If you were a member of the cabinet, what would you do to achieve these goals?
Address the following in 1,000 words including at least 1 Ref:
· Increase exports of small and medium-sized businesses.
o What kind of programs should be put in place to improve information?
o What kind of technical assistance should be given to first-time exporters?
§ What kinds of education do first time-exporters need to do business overseas?
o How can the government assist these exporters with new opportunities in international markets?
· What other kinds of assistance can the government give?
· How can consumers help?
· How can the banks help?
o What does the export-import bank do?
· What macroeconomic policies would be helpful?
o Should the Fed involve itself more in the foreign exchange rate?
o Should interest rates remain low?
· How do you reduce barriers to trade? What issues do you think will come up in new markets with old trade barriers and enforcement of current trade agreements?
· How does all this achieve the president's objective of reducing unemployment and increasing gross domestic product (GDP)?
· Are there any risks to U.S. fiscal, monetary, or trade policies?
Part 2
Part of a business strategy that you are considering involves the reduction of labor and material costs. Your chief financial officer (CFO) suggested doing some of the manufacturing overseas. The concerns in moving some of your manufacturing offshore may be that you achieve lower costs of production but lose quality control (a trademark of your brand) and perhaps even reduce morale in your company by laying off those workers whose jobs will be performed overseas. These are serious issues. You asked your CFO to outline the benefits and disadvantages of doing so in regard to your relationship with your employees, balance sheet, quality, and service.
Explain 3 additional benefits and 3 additional disadvantages that would concern you and the economy, and answer the following questions in 500 words including at least 1 Ref:
· What would you conclude?
· Is there something else you can do with those employees that you would be laying off?
Part 3
In your quest to understand how your employees would be affected by any of the decisions that you are going to make, you also realize that your labor costs may not be the real source of your balance sheet problems. After all, you are manufacturing in a region that attracts many immigrants, which because of an increase in the labor pool actually keeps your labor costs relatively low. This sparked the question about why Americans continue to be concerned about immigration policy and what the debate is about. You want to know more.
Explain the following in 500 words including at least 1 Ref
· What effect does immigration have on wages?
· Does immigration help or hurt a country's output?
· What are the advantages of immigration?
· What are the disadvantages of immigration?
· What are some of the current political and economic issues regarding immigration?
· What is the debate surrounding the Dream Act?