Protectionism or Strengthening Competitiveness: The Case of the United States of America

Abstract

In recent years international trade growth has been slow. Although international trade is considered to have various benefits, such as access to international markets, rapid economic growth, higher competition, and improved investment climate, there is a growing tendency to justify protectionism, especially by the United States of America. The rise of protectionism is part of a growing social and political response to the phenomenon of economic globalization. The United States have strongly supported protectionism as a means of preserving jobs and reducing income inequality. The purpose of this article is to examine whether the protectionism currently adopted by the United States is beneficial to economic growth. Moreover, we examine whether strengthening the competitiveness of the US economy in order to boost the country's exports constitutes a way to avoid a global shift towards protectionism by the sovereign states of the international economic system. The United States wants to reconsider trade agreements, particularly with countries that run trade deficits, including China, Japan, South Korea, and Germany. We will examine the reasons why the United States is seeking protectionist measures. The methodology adopted is the theory of competitive advantage.