The United States of America manufacturing policies are a disruptive revolution of the manufacturing and production industry. In contrast, manufacturers in the US make up over half of the total country’s exports. A trade policy has been set up with the aim of promoting and improving manufacturing companies in America. Some developments have been made about enhancing and increasing the exports. The United States government aims at creating an export control system and the creation of the “next” program to provide frameworks for supporting and promoting the exports. Various agencies have been set up to boost the amounts of exported commodities, therefore, playing a significant role in the development of the manufacturing sector in the US (Mensah, 2010). In 2008, the United States experienced a considerable period of economic recession leading to a reduction of the country’s GDP. The recession resulted in a review of policies that brought about changes in the country’s trade policies, as a result, allowing more export commodities from the manufacturing sector. The United States’ boom in oil and gas production led to various improvements of certain economic aspects. For instance, the oil and gas production growth resulted in low energy prices, eventually, leading to a low cost of production that boosted the manufacturing industry. Besides that, the changes made in the recruiting and training of the workforce has allowed innovation in the country leading to increased manufactured commodities. The improved trade policies that have allowed free and fair trade of the accepted products have boosted the expansion of the manufacturing sector.
The implementation of the farm bill in 2014 was a critical trade policy in the USA. The implementation of the policy led to a considerable change in the manufacturing sector. It specifically affected manufacturers dealing with agricultural products. Exports subsidies for the agricultural manufacturing sector has increased the amounts of agricultural product exported. In turn, this has led to the expansion of the manufacturing sector. However, recent years show a deterioration of the manufacturing sector in the USA. However, the state and other countries with the intention of reducing the different barriers to the United States manufactured goods have signed new trade agreements. The low tariffs in the USA are small, therefore, allowing the export of many manufactured products. The USA has prioritized competition and innovation in the manufacturing sector.
Since the year 2009, Singapore has aimed at moving up its value chain leading to its positioning as a class and center. Some of the key strengths portrayed by the country include its educated and skilled employees, supportive leadership authority, regulatory and friendly business environmental and presence of several research institutes in the area. Since the year 1960, Singapore has had an extensive labor-intensive economy as compared to other world economies (Pasadilla, Nordås, & Findlay, 2014). The country’s manufacturing policy comprises of industrialization led to the economy and the promotion of foreign investments as well. In addition to that, the government of Singapore’s policy has focused on encouraging economic restructuring through improving its workforce capabilities and driving them into innovation and manufacturing. In the year 2010, a structure was set up with intentions of supporting skill enhancement and laborsaving technologies as well. Various manufacturing opportunities have been set up in Singapore thus supporting the development of the industry broadly.
Besides that, Singapore’s government allows free trade and investment, which remains to be a major key towards the development and growth of the manufacturing sector. Due to the reasonable regulations of trade in the state, most manufacturers have increased their exportation leading to the growth of the industry. The business policies in Singapore are underpinned through their bilateral free trade and a network of 21 regional agreements signed with other countries to increase their transportations (Kung, Li, & Tai, 2016). Due to the accords, the trade of merchandise with other countries accounted for about 80 percent of Singapore’s imports in the year 2014. The investment regime in Singapore has not changed anyone bit. Mainly most of the different restrictions affecting the state are the legal services, retail banking and other broadcasting management. In the recent years, Singapore has advocated for trade liberalization in the world trade organization (WTO) (Singapore, 2016). Thus, this shows that the government of Singapore is devoted to improving its manufacturing skills by the improvement of both domestic and international trade. Importantly, Singapore’s authority has allowed free opening of businesses that requires two procedures that could take a period of one day for completion. Therefore, this shows that opening a manufacturing company in the country is easy hence increasing the number of manufacturing businesses in the area. Further, the export controls in Singapore are mainly implemented among health, safety, security and environmental reasons to comply with the legal system of other countries. However, the state does not apply excise tax on the exports with intentions of promoting the export of the manufactured commodities in the area. In addition to that, Singapore provided tax incentives and subsidized insurance premiums designed to support trade finance among the manufacturing companies.
In conclusion, trade of manufactured commodities has significantly improved in Singapore as compared to the United States of America. The main difference is noted from the business policies in the two regions. Singapore has developed the business in the area by no taxing the exported commodities. The USA experiences trouble in the manufacturing sector due to the external barriers to the USA goods that require signing of various trade agreements to boost the business.
- Kung, M., Li, Y., & Tai, W. (2016). The Political Economy Analysis of China–ASEAN in Service Industrial Cooperation and Open Policy. Chinese Economy, 49(6), 414-428. doi:10.1080/10971475.2016.1207979
- Mensah, S. (2010). Globalized Supply Chains and U.S. Policy. New York: Nova Science Publishers, Inc.
- Pasadilla, G., Nordås, H. K., & Findlay, C. C. (2014). Trade Policy In Asia: Higher Education And Media Services. Hackensack, NJ: World Scientific.
- Singapore. (2016). Singapore Country Risk Report, (3), 1-51.