IDEAS home Printed from
   My bibliography  Save this paper

Managing Foreign Trade


  • Mills, W. Raymond


The U.S. economy is suffering because of misguided theorists/economists who continue to insist that the federal government should not intrude in international trade in a way that reduces imports into the U.S. This essay answers that perspective. A new way of looking at trade - in terms of the effect of trade on Gross Domestic Product - is developed that shows clearly the harm done to the U.S. economy by the trade deficit. The proposed intervention takes the form of a gradual increase in tariff rates for ALL imports manufactured in the 5 nations that are the main reason for the large trade deficit experienced by the U.S. By proposing a uniform tariff rates on all imports from selected nations, it avoids the problems created by traditional protectionism. No products, no industry receives favored treatment. This solution shows that an alternative to Free Trade can be developed other than traditional protectionism. One merit of this proposal is that it bypasses negotiations with other nations. It is unilateral action by the U.S. to change foreign trade so that trade supports the U.S. manufacturing sector. Seeking to approach equal trade with all trading partners is a stance recommended for all trade deficit nations. This action, if duplicated, will move the world trading system toward the balance often advocated as a way to insure continuation of the international trading system.

Suggested Citation

  • Mills, W. Raymond, 2010. "Managing Foreign Trade," MPRA Paper 20539, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:20539

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    More about this item


    Trade Deficit; Tariffs by country; Gross Domestic Product;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20539. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.