The Global Economy and International Trade

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The Global Economy and International Trade

What Is International Trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

The Importance Of International Trade To The US Economy
America cannot have a growing economy or lift the
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● Science And Technology Revolution
After the WWII, led by the United States, atomic energy, electronics, synthetic materials, space technology and biological technology appears as a representative of the new technology revolution. The new science and technology revolution produces a series of new industries including atomic energy industry, semiconductor industry, petroleum industry, chemical industry, electronic industry, aerospace industry, biological industry, etc. which vastly broaden the varies kinds of product.
● Consumption Structure Changes
Postwar peace environment and revolution of science and technology makes the world economy has shown unprecedented rapid development. Rapid economic growth not only reflects the increase of production capacity of a country, but also the increase of people income. Income growth promotes a gradually change in people’s consumption structure. Besides to meet the demand of basic product, people also have a growing demand for high quality manufactured goods. Such desire and demand for new product demand greatly stimulated the trade between countries.

The Effects of Global Competition on U.S
U.S. sales abroad are overshadowed by the huge demand by American consumers and industry for imported products. Since 1976, the United States has incurred continual trade deficits with annual amounts increasing steadily until the years 2005 through 2008. Then in 2009 the U.S. trade deficit on goods declined roughly 39%, as U.S.
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