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Explain whether it is more important for U

Business Dec 10, 2020

Explain whether it is more important for U.S. firms to help our domestic economy or the economies of foreign countries.

Expert Solution

It is more important for US firms to help the domestic economy than the economies of other nations. That is not to say that US firms should only produce and sell goods to US citizens, but the goal of them selling and buying from other nations is that through trade we can increase the size of our economy. If we just send goods abroad and get nothing back that would be undesirable. We produce goods and send them abroad so that we can get goods that other nations specialize in.

Therefore,the goal should be growing the domestic economy and this comes by allowing US firms to help foreign economies. The only time this should be prevented is when a US firm is helping a potential adversary such as China or Iran. In such cases, reasonable restrictions are beneficial because the economy is only one aspect of the health of a nation.

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