Reference no: EM131472344
It is a debate letter that I need to write. Actually the homework is about the following Hypothetical Letter from a Consumer Group that I don't agree with, and I need to write a support position for the opposite of what I now believe. It needs to be 1-2 pages only.
Hypothetical Letter from a Consumer Group
The W.T.O. is currently considering whether to reduce agricultural subsidies and whether to open more financial services to international competition. Subsidizing farmers of some countries decreases the amount of other countries agricultural goods that can compete in export markets. Protecting domestic financial services providers from competition reduces the services available to local businesses and individuals. We believe that subsidies and anti-competitive rules would be harmful to most citizens. Protectionist trade policies will benefit a few but will harm many.
All countries wish to avoid a high inflation rate. Consumers constantly face increases in the prices of agricultural goods and financial services. Current subsidies and limitations on foreign direct investment certainly reduce competition and intensify inflationary pressure because prices are forced to go up. If consumers want to buy low-cost agricultural products, why shouldn't they be able to? Why should they be forced to buy only the more expensive local agricultural products? Why should the consumer pay more just to keep small farms alive a little longer?
The agricultural and financial industries have sought protection through subsidies and other means and received it for decades. These industries have yet to completely modernize their methods of production and management. If they modernized, then they could compete with the lower-priced output from foreign producers and services. We must ask ourselves if these are industries that deserve protection. After all, the consumers end up paying for the protection in the long run. Furthermore, are these industries really key industries in all countries?
Once we have committed ourselves to continuing protection for agriculture and financial services, other industries will ask for government protection. How can we justify giving protection to one industry and not another? The economic problems in the service economies of today cannot be blamed on agriculture, for example.
The agricultural and finance industries have done a great disservice to the consuming public by receiving protection in the past, and we should not allow this to continue. Our consumer group calls for the gradual removal of all agricultural subsidies and removal of barriers to foreign investment in financial services over the next six years.