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International Trade: Pros and Cons
In our globally interconnected world in which it seems that every possible pairing of trading partners is occurring at all times, the idea that international trade is anything but the best system for supporting the global economy can seem quaint if not absolutely absurd. But simply because the world now exists as an increasingly integrated market in which fewer and fewer tariffs or sanctions have significant power does not mean that it is not significant to examine on a continuous basis the advantages and disadvantages of international trade.
Of course, there is no single assessment as to whether international trade is advantageous or disadvantageous because international trade affects different nations (and even different regions within the same nations) differentially. For the purposes...
According to the United States Chamber of Commerce, in 2009, the U.S. earned $136 billion from exports. These exports include everything from agricultural products to manufactured goods to services and expertise. Americans can and do create more goods and services than can be consumed in the country and so depend on extra-territorial markets. The fact that American companies and workers can earn money by tapping into non-American markets ensures that they can create more wealth for themselves than would otherwise be the case.
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References
Hubbard, R. & O'Brien, A. (2010). Applying International Trade Concepts simulation Economics (3rd ed.). Boston, MA: Pearson Hall.
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