Gazi Helal Rahman, ID: 2015-1-10-305

Business Communication, BUS231 (Section 4)

FE Report #01, 13 February 2017

TRUMPS PROTECTIONIST ECONOMIC PLAN IS NOTHING NEW

Donald Trump's shameful executive order banning refugees and others from 7 Muslim
countries to United States has been the most talked topic in recent weeks. In any case, the harm
done to America's image and to the worldwide economy, may be further aggravated by Trump's
initial choices on trade.
Trump has selected the well-known protectionist trade litigator Robert Lighthizer to be US
Trade Representative. Furthermore, the other two individuals from his trade triumvirate are
Wilbur Ross and Peter Navarro. Many Americans trust that free-trade agreements are the
reason their salaries have deteriorated over the past two decades. So, Trump plans to render
them with "security" by placing protectionists in control. However, Trump and his triumvirate
have misdiagnosed the issue. While globalization is a critical figure in the emptying out of the
white-collar class, so is robotization. Triumvirate are seeking twentieth-century answers for
America's twenty-first-century business problems. Tragically, outdated economic policy won't
help American business intensity, regardless of the possibility that it spares a couple of
thousand employments in sunset industry. Additionally, destroying trade contracts and raising
tariffs will do nothing to make new, well-paid jobs. In fact, it will most likely will only bring
more harm to workers.
Trump administration is missing a simple point: 21st century is information driven, not
exchange driven. Low communication cost has empowered US firms to move production to
lower-wage nations, while keeping their production process synced by offshoring quite a bit of
their specialized, promoting, and administrative expertise. This "information offshoring" is the
thing that has truly changed the game for American laborers. If Trump administration enforces
tariffs, it will transform the US into a high-cost island for mechanical data sources. Firms may
be instigated to move some production back to the US, only for US customers. In any case,
they will be similarly urged to move production to contend with Japanese, German, and
Chinese makers outside of the US.
Trump ought to secure individual workforces, not individual occupations. US needs to
reestablish its social contract so that its laborers have a reasonable shot at partaking in the
advantages created by worldwide openness and computerization. Globalization has
continuously made more open doors for the hardest workers, and more weakness for others.
This is the reason a solid social contract was set up amid the post-war time of progression in
the West.
In the course of the past two decades, this circumstance has changed intensely. Globalization
has proceeded; however, the social contract has been torn up. Trump's top need to join it back
together; yet his exchange guides don't comprehend this. Tragically, they appear to be
determined to forcing taxes, which will disturb global supply chains, potentially prompt to
trade wars, and just rush US industry's move abroad.

Source: The Financial Express, 12 February 2017