Research Of United States Trade Protectionism Under The Background Of Financial Crisis

In2008, the global financial crisis outbreaks from the United States, majoreconomies have been implicated in the domestic economy shrinking; the foreigntrade environment is harsh. Leaded by American, most major economies havestarted to impose trade protection policy and introduced a massive economicstimulus plans, expecting to enhance their own market competitiveness in industriesand products as well as reducing their economic losses. Many countries adopt tendedto be recessive relatively trade protection measures before the financial crisisoutbreak when the global economic situation is good. The global economicdownturn after the financial crisis outbreak, and these hidden trade protection cannotcontent the States’ expectations of protecting their own industries and products anylonger. The dominant trade protection measures became a best choice to majoritycountries. Consideration of the serious impact on the country from the economicdownturn and the consumer confidence decline, regardless of the negative impact onother country’s economy and with the idea of sanctions against other countries underthe environment of the financial crisis, U.S. government has made a series measuresto protect their economies. American adopt these measures may achieve a certaineffect in a short term; however, it must be consumers pay for the conduct of thegovernment from the view of a whole society. Each commodity is different fromothers similar products, but the premise of trade protection is other countriesproducts have comparative advantage relative domestic product, so as a result, limithigh quality and inexpensive products to enter the market lead to only high pricesgoods that made in American on the market that will be a huge harm to consumers.As the most prosperous and strong country in the world, any resolution, policiesand regulations promulgated by the United State will bring a huge influence in theworld. When financial crisis comes, American carry out trade protectionism insteadof the free trade policy which recognized by the community of nations will bring outa tremendous impact not only on their own, but also establish a negative image in the world. This action will obliterate the contribution of the free trade decades on theglobal economic market, and delay the recovery of the world economy.This paper analysis a series of protective measures and the protective policytaken by the United States after the outbreak of the financial crisis, summed up theircauses and effects, put forward countermeasures which China should do. This paperis divided into four chapters.The first chapter expounds the definition of trade protectionism, characteristicsof trade protectionism, and the theory of trade protectionism, concludes main tradeprotection forms in the context of the financial crisis.The second chapter analysis the economic situation after the outbreak of thefinancial crisis in the United States of the U.S. GDP, the manufacturing PMI, thebudget deficit, unemployment. Introduces the U.S. trade protection means, at lastanalysis the reasons why the U.S. trade protection prevalence in the economic,political, and institutional three main aspects.The third chapter by analyzing data illustrates the economic impact on theirown of trade protection measures, and described the impact that United States in implement trade protectionism as a leader on the world economy, and pointed outthat trade protectionism will be more and more frequent and strong in the future.The fourth chapter describes the harsh environment of China’s foreign trade,pointed out that the RMB is confronted with a enormous pressure to appreciate,more important international primary products substantially growth in prices, andthen recommends what countermeasures should be taken in face of the world tradeprotection measures from the United States and other countries through the point ofthe government, businesses, and trade associations.