Business-International Contemporary Issues in International Essay

Excerpt from Essay :

This was about the same time we entered into a so-called global economy. Americans buying American puts the steering wheel that is controlling our nation's fate in the hands of those who care about it most - the American People. People feel that the time has come for ordinary Americans to take control of America's destiny (Buy American, 2005).

Supporters of the Buy American campaign which is promoted by the union and some domestic manufacturers fear a growing protectionist sentiment along with efforts to restrict spending of billions in federal stimulus dollars targeted for infrastructure improvements across the nation. With the global crisis that is presently going one, now more than ever America needs to take an active first step in safeguarding working people (DaParma, 2009).

To date, the union has worked to help get the Buy American resolution introduced in more than 600 cities, towns and states nationwide. These efforts could spark similar actions in foreign countries and even trade wars. It is thought that this might even hurt some U.S. companies, especially those companies that rely on materials from other countries in order to produce their products. Buy American has been around since the 1980s, and was introduced during the same kind of economic problems that we are seeing today (DaParma, 2009).

The Buy American Campaign is seen by some as an issue of protectionism. While others see is as the seed that is needed to get the economy rolling. This is being seen as strictly an economic common sense thing. It is a stimulus that is meant to stimulate the American economy and if we spend it offshore, it won't do that. It is about using taxpayer dollars to purchase American made goods. The language that is in the resolution will help revitalize the American manufacturing base. This is seen as capable of creating four to five new jobs for each employed manufacturing worker (DaParma, 2009).

Stimulus spending will have only a small impact on the domestic industry. Concern overseas has begun to spark discussion of similar actions in other countries, including Canada. It is believed that President Obama did the right thing with the Buy American initiative when he said the U.S. shouldn't pass anything that would violate any international obligations, and that was the legislative language that ultimately passed in the stimulus bill (DaParma, 2009).

The Buy New Zealand Made campaign was started back in 1988. Its emphasis was to encourage consumers and organizations to buy New Zealand goods and services. Most people share the common idea that they should support their own local community ahead of outsiders. And the success of the Buy New Zealand campaign has been greatly helped by the well recognized stylized kiwi. Nine out of ten Kiwis prefer to buy products made in New Zealand, where price and quality are the same. For a product to carry the Kiwi trade mark of the Buy New Zealand Made Campaign it must be made in New Zealand (Buy NZ Made, 2008).

Membership in the Buy NZ Made opens up opportunities for New Zealand businesses to get together and form valuable partnerships. This helps to generate success for both manufacturers and retailers by providing networking opportunities, links with other manufacturers, introductions to retail partners and trade show assistance. The Buy NZ Made organization is managed by a switched-on, friendly and helpful team who are focused on ensuring members get the most out of their membership (Ake, n.d.).

The buy New Zealand campaign that was going on in the country was set up by a group of business to try and promote the idea of buying New Zealand products. This is the opposite of how the Buy American plan is set up. It consists of a government run campaign to buy American in order to help stimulate the sagging economy. One is a private run campaign and one is a government sponsored campaign.

If you look at the effects that protectionism and free trade have or would have on the agriculture industry in New Zealand you see that protectionism would hurt this industry tremendously because it is a very heavy exporter. New Zealand would lose a lot of income as well as affect the job economy. Jobs would be lost and the general public would suffer. The idea of free trade would be the best plan for this industry since they export so much fresh fruit around the world. Continuing to operating under a free trade scheme will allow New Zealand's agriculture industry to continue to thrive and grow on the pace that it currently does. This is the best plan that will allow them to continue to make the profits that they do by exporting their fresh fruit around the world.


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