Why They Can't Compete in the U.S.

MANY Europeans are convinced that, if U.S. tariffs were eliminated, they could earn the dollars they need in trade, not aid. Many Americans are just as convinced that, without tariffs, cheap foreign goods would flood the U.S. and wreck many U.S. industries. But if all tariffs were removed, would cheap foreign goods flood into the U.S.? The answer is probably no, unless foreign businessmen drastically change their selling tactics.

One reason is that cheap foreign labor is usually offset by low productivity and lack of capital needed for investment in efficient plants and machines. Removing tariffs...

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