Why some american companies might be opposed to provision

Assignment Help Microeconomics

Reference no: EM132128859

Question: The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by President Obama and Congress in response to the recession of 2007-2009. The primary components of this bill included tax cuts and increased government spending, with an emphasis on infrastructure spending such as roads and bridges. Included in the bill was a "Buy American" provision which required all manufactured goods (a few exceptions did apply) purchased with ARRA funds to be made in the United States. The intention of this provision was to increase jobs in the United States by preventing foreign companies from reaping the rewards of the new spending projects.

a. Are attempts to protect U.S. firms from foreign competition, such as the Buy American provision, good ideas? Explain.

b. Explain why some American companies might be opposed to this provision.

c. Explain whether or not you believe the Buy American provision would create jobs in the United States.

d. What do you think will be the economic consequences of a Buy American provision?

e. Do you believe the government should get involved in this aspect of private business, even when the available funds are coming from the government? If so, why? If not, why not?

Reference no: EM132128859

Questions Cloud

Proposal - impact of virtual reality on real estate industry : ITECH 1100 Understanding the Digital Revolution - Video and Disruption Report Assignment. THE POTENTIAL IMPACT OF VIRTUAL REALITY ON THE REAL ESTATE INDUSTRY

Shift due to another employee personality and attitude : What would you say to an employee who asked to be moved to another location or shift due to another employee's personality/attitude?

What arguments were put forth by the treaty critics : Participation in World War I led to many changes in the U.S. government, our economy, and society as a whole. Some changes were positive and some negative.

Disadvantages of anonymous reporting in improving quality : Discuss some of the advantages and disadvantages of anonymous reporting in improving quality

Why some american companies might be opposed to provision : The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by President Obama and Congress in response to the recession of 2007-2009.

Types of budgets utilized by health care managers : Analyze the major characteristics and types of budgets utilized by health care managers.

Create two virtual machines : You are to also install bind on Virtual Machine Two and make it a secondary for the above domain. You can install this service from a package or configure

How changing the reporting method could be deceiving : Compare and contrast the reporting of GDP in nominal versus real terms. Explain how changing the reporting method could be deceiving when reporting the output.

How a non-income determinant of aggregate demand affects gdp : Analyze how a non-income determinant of aggregate demand affects GDP. Choose and analyze one of the below GDP components and associated non-income determinants.

User Account

All Pages