International trade has enabled nations to get raw materials and finished goods from other countries. Economic, political, and social activities have been enhanced through trade relations among countries (Sourdin 2012). America trades with almost all countries in the world in terms of importing or exporting goods or services. The America Defense Force import shoes from Asia, and this has led to debates that would lead to the improvement of local industries to ensure these products are sourced from American companies. This essay presents an analysis of an article about the military shoes and local manufacturers and the economic effects of promoting local shoe manufacturing industries to supply the products.
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James R. Hagerty and Ben Kesling argue that America has the potential of manufacturing missiles, nuclear submarines, and fighter jets, but it surprises most critics that the military that uses this equipment but find it difficult to trust local companies to supply safe sneakers. However, the Department of Defense has come to the rescue of local industries and agreed to consider their bid to supply these shoes (Hagerty and Kesling 2014).
The local manufacturers did not have the capacity to produce some shoes; therefore, there was an amendment in 1941 (the Berry Amendment of 1941) that allowed the Defense Department to buy items that were not manufactured by American companies. The comfort and safety of soldiers’ feet were the most important aspects that were given attention when selecting the quality of shoes for the military. These authors argue that lawmakers from Massachusetts, Michigan, and Maine and the domestic shoe industry are piling pressure on the military to stop exempting U. S. -made sneakers (Hagerty and Kesling 2014).
Shoe makers like New Balance Athletic Shoe Inc. and Wolverine Worldwide Inc. expressed their abilities to produce quality shoes and argued that this would promote the economy and create jobs for about 200 people. Legislators like Mike Michaud, Michaud Said, and Susan Collins have expressed their interest in compelling President Obama and Defense Secretary Chuck Hagel to understand that local industries are ready and able to deliver the expected quality of shoes. These authors argue that Asia exports more than 99% of the military’s footwear (Hagerty and Kesling 2014).
New Balance Company is among those prepared to benefit if the government decides to stop importing shoes from Asia. Its spokesperson argues that military recruits will save a lot of money by purchasing locally manufactured shoes. This company wants the military to buy 100% U. S. -made sneakers even though it currently provides part of its supplies like T-shirts, underwear, and socks (Hagerty and Kesling 2014).
It is evident that most recruits do not bother the quality or origin of their sneakers, but pay attention to how they fit them. Tom Capps (president and majority owner of Capps Shoe) argues that there are fears that Asia might not be available to supply the American military with what it requires and thus there is the need for the U.S. to start thinking of relying on local industries (Hagerty and Kesling 2014). There were claims that the state should waive the cost of acquiring and manufacturing shoes that could not be produced in America for soldiers that had unique needs.
Economic impacts of having all American shoes being produced in America
The military will get cheap shoes because the cost of producing them in local industries will be less than that of importing them from Asia. Also, there will be no transportation costs or other expenses incurred in shipping shoes from their manufacturers in other countries to America. Therefore, the soldiers will afford to buy cheap and quality shoes and at the same time, save, money for other uses.
Secondly, there will be employment opportunities in local industries. It is necessary to explain that the demand for local shoes will increase when the military decides to buy 100% U. S. -made shoes. Unemployment is a serious problem facing America, and if it decides to support local industries th,e impacts of this challenge will be reduced (Sourdin 2012). One company can employ more than 200 people, and this means that there will be employment opportunities for more than 1000 unemployed Americans. Also, suppliers and marketers will also create job opportunities, and this will boost the gross domestic product of America.
Thirdly, local industries ensure money is circulated in a country (Sourdin 2012). This eliminates trade deficits caused by the limited supply of money in circulation. The military should consider buying shoes that are 100% U. S. -made to ensure money is not used to buy goods in other countries. This will strengthen the American dollar and make it attractive in the international market. The recycling of a large share of their revenue will ensure money is circulated within the American territory.
Also, there will be an improvement in the local infrastructure because these companies will require passable roads and efficient communication systems (Sourdin 2012). This means that the local communities will benefit from improved service delivery and issues like insecurity, poor roads, and unreliable communication networks will be eliminated. Therefore, it is necessary for this country to consider buying military shoes from local industries.
Lastly, local shoe manufacturing industries will stimulate economic growth by attracting investors in other industries. There will be fast-food restaurants, entertainment joints, public transport, and other services offered near these industries. This means that the establishment of auxiliary industries will benefit the American economy, and this shows the benefits of buying locally manufactured products.
However, it will not be wise to rely on local industries to supply shoes for the military because of unpredictable circumstances that may affect the operations of suppliers. Calamities like fire outbreaks, floods, tornadoes, and others may affect the activities of shoe manufacturing companies and expose the military to inadequate supply of equipment. Therefore, it is necessary for America to consider importing these shoes rather than getting them from local industries.
Hagerty, J. R. and Kesling, B. (2014). America’s Strategic Shoe Reserve Military Explores Requirement that Sneakers Be U. S. -Made; New Balance of Power. New York: Dow Jones and Company. Web.
Sourdin, P. (2012). Trade Facilitation: Defining, Measuring, Explaining and Reducing the Cost of International Trade. Massachusetts: Edward Elgar. Web.