ECON 241 Dr.

Sauer

Homework #2

1. Examine the labels of your possessions to see where each was made.

Item Country
Clothing
1.
2.
3.
Toiletries (e.g. deodorant, make-up)
1.
2.
3.
Electronics
1.
2.
3.
Food
1.
2.
3.
Other items
1.
2.
3.
4.
5.

2. Explain the patterns that you notice.

3. From this small sample of your items, how dependent are you personally on international trade?
Explain.
 ECON 241 Dr. Sauer

4. The US Customs and Border Protection agency is responsible for clearing all international trade
shipments. In relation to USI, in what city do you guess the nearest US Customs office is located?

5. Now go find out where the nearest US Customs office is located.

Go to: http://cbp.gov/
Click on the Trade tab at the top of the page.
Click on Locate a port of entry land, air, or sea. (a port of entry is a place where a customs officer
can accept international shipments and collect customs duties)

The name of the nearest port of entry is ____________________________________________.

The port code is ___________.

The physical location of the nearest US Customs office is _______________________________.

6. How did your guess compare to the actual location of the nearest customs office? Explain your
reaction or what you learned.

7. True Scenario: One of the provisions in the current economic stimulus package (the one floating
around Congress) is that all materials and equipment used in projects funded by the bill be made in the
U.S., with an exception when the U.S. materials would drive up the project's cost by more than 25
percent.

That means if a project that is funded by the stimulus package costs $100 million using steel from the
lowest cost source (anywhere in the world) and costs $120 million using only American steel, only
American steel would be used.

Explain how each of the following stakeholders might view this provision in the stimulus package.
a. US trading partners:
b. US workers in industries producing materials and equipment used in funded projects:
c. The WTO:
d. US taxpayers:

Taking the above into account, are you currently for or against such a provision? Justify your position.