Student discussion - DUE: Tonight

Please reply to the following student discussion.

Border Tax Influence

http://www.smh.com.au/money/donald-trumps-economic-package-unlikely-to-match-rhetoric-20170123-gtwyck.html

This article found in the Sydney Morning Herald by, Jessica Irvine, illustrates one example of how governments can influence trade. The President of the United States, has in a way, leveraged monetary penalties and rewards based on how businesses conducted their operations within US borders. The government is promising that in the future, regulations will be cut in their favor that will allow them to operate more freely, under the condition that they do not relocate jobs overseas. This positioning is placing many business leaders of multi-national corporations in a state of uncertainty concerning their business operations. The border tax that is being threatened, poses a risk to all international trade partnerships currently in place, and can subsequently cause a rise in inflation for all parties involved.

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