The importance of an international trade to US and its most importing trading partner.
Explanation of Solution
International trade is the trading relationship between nations without borders. The international trade is such that the import and export of goods and services take place between the nations. The international trade allows the country to focus on the production of goods and services in which, they have the
The importance of the international trade in the case of US, can be identified by looking into the share of the international trade in the US GDP. When we look at the share of the international GDP, around 14 percent of the US GDP is contributed by the international trade. It is a very small share when compared to that of the other industrialized countries such as Belgium and Netherlands, which have nearly 80 percent of GDP that is raised from the international trade.
The most important or the major trading partner of US is Canada. They were exporting 15 percent of the US imports and importing 20 percent of the US exports in the year, 2012. The easy access to markets and the lower transportation distance, all that helped the two top countries to become the major trading partners.
China was known to be the country with which, US had the largest
Concept introduction:
International trade: It is the trade between nations beyond borders. The market is open to the domestic players as well as the foreign players.
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Microeconomics 20th Edition Community College of Philadelphia Custom