Monday, March 28, 2016

Trump, Brexit and the art of the deal

Trump has been making statements about how he plans to take a firm hand when it comes to his policy about building a wall and making Mexico pay for it, however this article talks about how the assumption that America just needs to be tougher could actually backfire. While it is appealing for politicians to talk about being tough and threatening, it is not beneficial to be unwilling to compromise with other countries. For any deal to be beneficial, both parties must be willing to compromise. It is unrealistic to say that just because you act tough and threatening that another Country will simply back down and give in to demands that are not in their best interest. Both parties must be willing to give up things and understand that you can't always get everything you want. If we take on the attitude that we can bully other Countries into deals that are only good for us then we will see a lot less trade and a lot more conflict.


http://www.economist.com/blogs/buttonwood/2016/03/politics-and-economics

2 comments:

  1. I agree, Trump thinks that by eliminating trade with Mexico we will get them to build the wall. But while we are not trading with them millions of Americans, who benefit from our trade agreement, will be hurt. Car companies for example rely on Mexico for may of their parts. When a car is "built in America" that often times means that they are just assembled here. Trump doesn't account for the lot production we will have. Prices will skyrocket because of a loss of supply while demand remains high.

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  2. I also think the idea of being "tough" and essentially stubborn with other countries will not play out well. I immediately think of the politicians in congress, many of whom are "tough" or "stubborn", and we've seen how effective congress has been in enacting legislation... I think there has to be a mutual respect for other countries, and attempting to force other countries to agree to your demands will only hurt us and our global reputation.

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