The USA and International Trade at the End of World War II
No doubt, founding fathers of the USA were "trade policy realists" (Susan Ariel Aaronson).
The embers of years of "taxation without representation" emphasized on threatens of protection as well as the need to inspire new markets for America's fledgling economy.
The Congress was left by the Constitution to be responsible for trade policy.
Tariffs were used by policy makers to defend particular sectors of the economy.
In addition, policy makers signed treaties dealing with commerce and navigation.
They underscored a reciprocity policy on shipping.
Their impact is great in developing considerable and rich internal resources of the USA.
However there were some Americans that stated to use tariffs as a mean to stimulate economic development of the USA.
Tariffs worked as a motive to purchase domestic goods because they raised the price of imports.
In 1820-70s the main goal of American trade policies was to defend the domestic market.
The reasons for that were quite obvious.
America's population was growing.
Its considerable resources and expanding industry seemed to be a great opportunity.
Businessmen started to organize a domestic market for their own products.
According to Alfred Chandler, various big firms were flourishing when they reached advantages of cost from economies of scale and scope.
And as time passed, due to these efficiencies some firms moved into markets abroad.
Thus, by the beginning of the 20th century, more and more American producers looked for foreign markets in order to object downturns in US demand.
They were also hoping to get more economies of scale.
According to the trade statistics, in 1890, the United States had a relatively small share of world trade (approximately 3.
9%).
However, by 1913, the USA had almost 11%.
Accordingly, as the World War I was over, America became a large producer and exporter of manufactured goods.
So there were several branches of American industry and agriculture which depended greatly on foreign markets.
By the beginning of the 20th century, new mechanisms and institutions that reshaped trade policy were developed.
Such institutions as the Department of State, the Department of Commerce and Labor started to deal with businessmen and encouraged a support of further development of exports of the USA.
However, there were some radical changes to the economic policy of the USA proposed by some reformers.
They stated that during a long period of time Americans had paid high hidden taxes when they bought import products.
They also believed that tariffs were the major instrument.
The following solution was suggested by reformers: the income tax should be replaced by the tariffs as the major source of revenue of the government.
Moreover, not the Congress, but experts, should consider the rates of tariffs.
The embers of years of "taxation without representation" emphasized on threatens of protection as well as the need to inspire new markets for America's fledgling economy.
The Congress was left by the Constitution to be responsible for trade policy.
Tariffs were used by policy makers to defend particular sectors of the economy.
In addition, policy makers signed treaties dealing with commerce and navigation.
They underscored a reciprocity policy on shipping.
Their impact is great in developing considerable and rich internal resources of the USA.
However there were some Americans that stated to use tariffs as a mean to stimulate economic development of the USA.
Tariffs worked as a motive to purchase domestic goods because they raised the price of imports.
In 1820-70s the main goal of American trade policies was to defend the domestic market.
The reasons for that were quite obvious.
America's population was growing.
Its considerable resources and expanding industry seemed to be a great opportunity.
Businessmen started to organize a domestic market for their own products.
According to Alfred Chandler, various big firms were flourishing when they reached advantages of cost from economies of scale and scope.
And as time passed, due to these efficiencies some firms moved into markets abroad.
Thus, by the beginning of the 20th century, more and more American producers looked for foreign markets in order to object downturns in US demand.
They were also hoping to get more economies of scale.
According to the trade statistics, in 1890, the United States had a relatively small share of world trade (approximately 3.
9%).
However, by 1913, the USA had almost 11%.
Accordingly, as the World War I was over, America became a large producer and exporter of manufactured goods.
So there were several branches of American industry and agriculture which depended greatly on foreign markets.
By the beginning of the 20th century, new mechanisms and institutions that reshaped trade policy were developed.
Such institutions as the Department of State, the Department of Commerce and Labor started to deal with businessmen and encouraged a support of further development of exports of the USA.
However, there were some radical changes to the economic policy of the USA proposed by some reformers.
They stated that during a long period of time Americans had paid high hidden taxes when they bought import products.
They also believed that tariffs were the major instrument.
The following solution was suggested by reformers: the income tax should be replaced by the tariffs as the major source of revenue of the government.
Moreover, not the Congress, but experts, should consider the rates of tariffs.
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