Friday, December 29, 2017

The Costly Truth About automatic import quotas The Heritage Foundation

Влюблен по собственному желанию / IN LOVE THE INITIATIVE



Imports into the United States of foreign cars, mainly from Japan, have been limited since April 1981 by a voluntary agreement supposedly restra int Quotas were imposed in response to pleas from the US auto industry he needed time to grow strong enough to compete with imports on the free market quotas do not come cheap last year alone it is estimated that Americ :, ns has paid additional 5 billion because of limits import Meanwhile, the US auto industry had its best sales year since 1979 - win recbrd 10 billion profit the import restrictions are to expire at the end of March that the United Auto workers Union with art , Chrysler and Ford want quotas con- FOLLOW General Motors, on the other hand, opposes an extension, and the Reagan administration seems to lean in this direction have been the quotas are to be deleted, the winner is the American consumer w inning as would the US auto industry, which would become more competitive voluntary limit on Japanese cars imp has been reported previously negotiated by the Reagan administration at the urging the auto industry while suffering from 1981 to 1983, the Japa n ese were allowed to ship in January 68 million cars per year at the U S; Last year, the ceiling was 1 85 million By limiting the number of imported cars, Washington has allowed automakers to raise prices without fear of losing customers to cheaper competitors Wharton Econometrics calculates that the average price per new car has increased by 2,600 since the market tions were imposed Brookings Institution economist Robert Crandall estimated 400 of the price increase by US car -MAD ea possible because quotas have reduced competition with 1984 sales of nearly of 8 million cars in the United States, quotas March 2 billion consumers' pockets and gave the auto industry Crandall also believes that the low supply of cars imp o rted mandated quotas added 1000 the pricetag of all Japanese cars sold in the United States a total of 1 85 billion in additional consumption costs of the project law in 1984 in total for US consumers because of restrictions motor trade 5000000000 Some argue that quotas should be extended because the US auto industry is still not its economic This is a strange argument.
The 8 million cars made in America sold in 1984 represent the best annual sales since 1979. Ford showed a thud 26 percent increase in sales compared to 1983; Chrysler sales rose 17 percent 3; and General Motors increased by 13 2 percent of the total profits of the industry jumped a record already June 1 billion in 1983 to 10 billion in 1984 and these record profits were achieved while selling 2 million less than ca rs 1977 record sales This means that the record profits were due to higher prices because of import restrictions is certainly not a small industry that can make more money selling fewer products others argue that the quotas should be extended to allow US automakers become competitive with Japanese This is an old protectionist chorus, refuted by the facts of history shows that trade protection removes incentives for companies to take s the difficult decision needed to become more competitive It is doubtful, for example, that recent regulations sal areas and executive bonuses in automotive companies in the United States would have been equally generous had quotas are not protected US automakers of Japan today, Japanese can produce a subcompact car for about 2000 to less Americans not only due to cheaper labor Japanese University of Michigan professor David Cole believes it takes 200 hours to produce compar ed to US car 100 hours per Japanese car There is little indication Chrysler or Ford, companies seeking an extension of quotas to reduce the gap significantly GM, on the other hand, which seeks the repeal of quotas, has taken an important step to adapt the Japanese His new 5 billion Saturn Corporation will compete head-to-head with the small Japanese cars GM plans to design the most ef assembly line fective be at least one American car company seems to understand that bold, innovative movements are the key to successfully compete, not trade protection and promotes auto quotas restraining government contributes to the dangerous tendency to trade protectionism Currently, the United States negotiate with the Japanese to reduce barriers to these products in the United States that agricultural products and telecommunications equipment have the administration also seeks to open the markets of Japan from the United States to services and remove quotas against American products continues automatic quotas could sabotage these efforts If auto quotas are ex tended, they may become permanent, they would become a tax levied by automobile companies on the American consumer If industry American automobile is to be competitive, then the conc urrence should be allowed GM Chairman Roger B Smith notes the disci does global competition accelerates the pace of technological innovation and industrial upgrading, which means that growth and more and better jobs The case is clear Auto should aller Edward L Hudgins, Ph.D. Walker Fellow in economics.
F or Furt her information Robert W Crandall, import quotas and automotive costs protective I ism, The Brookin 3W Summer 1994 Roger B Smith, it's time to end the automatic quota, the Washington Post, January 30, 1985, page A19 Edward Mi ller, IJ S Car Makers post another good year, the Washington post, January 5, 1985, p Fl.







The Costly Truth About automatic import quotas The Heritage Foundation, auto, import quotas after January 1985.