Why Is International Trade?

My chosen topic to research is, why global business and international trade is important to the U.S.? This topic is relevant to the U.S. as it directly relates to economical lives today and the future. We need to realize the significance of trade and consequently to continue to be a successful nation in providing for the next generations. This international trade is paramount to the U.S. to “maximize product and efficiency; increase market audience and receive foreign direct investment.” (Satterlee 2014). Within the Agriculture industry, the U.S. export reached $152.5 billion over five-year period. In the hearing to pass the Trade Promotion Authority (TPA) it showed the

Some Major benefits of international trade include the reduction of poverty, expansion of business opportunities for local companies and reduces costs for consumer.

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

Imagine a world where trade was not allowed. If someone wanted an apple, then they would have to wander until they found an apple seed, plant and grow the tree using the rain they gathered from hand-made cups or barrels, and wait for years until the tree brought forth fruit. In order to build a house, this person would have to cut down trees with an axe that they forged and built themselves, then they would have to make mud to hold the lumber together so that they could build the house. Forget about electricity, cars, cell phones, most modern technology, because none of these things would be possible without trade. Fortunately, we live in a time when trade is widely accepted across the world. Charles Wheelan, an international economist, notes

International trade is believed by economists to be good for both countries involved. It promotes financial and economic growth throughout the world. It creates jobs, sustains economies, improves standards of living, promotes competition, lowers prices, and strengthens the bond between nations. In 2012, approximately 4.9 million people were directly or indirectly holding jobs that were associated with the production of goods and services sold to other countries (cite). Many of these jobs are manufacturing jobs that produce large amounts of products to sell to other countries. This is called an export. Export sales help maintain high levels of employment by breaking down barriers of unfair taxes. With opportunity to buy product from other countries, prices remain competitive.

There were many reasons as to why the first truly global world trade came to exist, the primary reason was because of cash crops and capitalism. Cash crops are grown goods that produce a mass amount of profit by traveling to areas where the demand of the specific crop is high. Examples of some major cash crops that civilizations wanted were cotton, sugar, tobacco, and spices. The primary cash crop that Europeans wanted was mostly sugar as it could be added to almost everything. Sugar originally was only used as a medicine but, then eventually became and additive for Europeans. The only problem with sugar being the primary product people wanted, was it was extremely labour intensive. The process to grow sugar cane was back breaking as it would

In addition, environmentalists worry that the industry is now following proprer safetyt precautions with the chemicals it uses.

With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel.

World trade plays an important role in how stable the economy is. Imagine if the Unites States allowed more oil exploration and actually had enough oil to sustain our nation and also to start to export the commodity. How would the world economy change? If free trade changes, the world economy would adjust. Countries would find other alternatives for import and export of goods to ensure they are able to stay competitive.

International trade is important to an open economy such as United Kingdom because the residents of UK’s wants are unlimited and they are insatiable as well. People’s urge to buy variety of goods and services are unimaginable notwithstanding that the good and services they want to buy, can be produced in the UK but unfortunately, they are not be satisfied with only the goods and services which are domestically produced in the UK because they believe that other countries are better at producing such goods even other goods different from what people use in the UK because of their natural endowments of productive resources. They have a lot of

International trade is the exchange of goods, services and capital among different countries (Wild, & Han, 2014). International trade is significant as it accounts for a substantial part of the nation’s GDP; therefore, every state support it. However, international business can be beneficial to the consumers or the producer, but at the same time, disadvantageous. For instance, in the situations where the world prices are below the domestic prices, the consumers will get the same commodities at a reduced price. Again, customers will have a greater variety of the same products and services; hence, they will end up with the best commodities in the market.

Europe has opened its markets to all imports from the world’s poorest countries, and works actively to help developing countries build the capacity to take advantage of trade. They also use the trade policy to reinforce other important international goals (European Commission 2017).

Goods - Eliminating tariff barriers promote intra-EU trade, creates new job and aids business. Thus, it develops a superior global position. Intra-EU trade is now greater external trade from the EU. For instance, some countries in North Europe do 70 % of their exports to the EU (See appendix 2). Around 54% of private sector companies in manufacturing experienced a positive impact on their total sales, mainly on the back of higher intra-EU exports. Benefits were created by the lower costs and removal trade barriers. Furthermore, exports to non-EU countries also rose. For instance, companies within Netherland, Spain and Italy experienced increased business

International trade is to explain why countries to import and export cargo, and barriers to trade and many different steps and trade barriers have been taken down and explain some economic factors must be protected trade.

Even though all businesses have the ability to earn profit, but those able to compete in a global market may earn better profits than those only focus in one country. I think that is why so many students choose to study international business. Because it many people are earning a lot money from it. International business mainly deals with business, trade and commerce on a global market. Because laws and cultures different from country to country, businesses have to prepare to deal with whatever issues may come up. With Internet communication, communicate between company are faster which cause global business competition became fiercer.