International Trade: Pros and Cons in Our

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 of this paper, I shall focus on the effects of international trade on the United States as representative of the ways in which First World nations are affected by international trade policies.

The United States depends heavily on exports as a basis for its overall economic health. 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.

In addition to the financial advantages that accrue to Americans through participating in international trade, there is also the rather considerable advantage to the United States that international trade tends to increase international stability. Countries (and their leaders) who can make money off of each other are less likely to invade each other.