US International Trade and Economic Nationalism
The economic success of each country can be seen through its international economic relations as far as the exports and imports are a concern. Being a global enterprise, the various economies of the world have developed as a result of diversifying its markets and an effective imposition of policies, which will ultimately benefit the country and other economies of the world. In this essay, we shall look at the international trade in the U.S with respect to its economic nationalism, barriers to trade, and the deficits and surpluses.
Economic nationalism refers to the strategies which a country puts in place so as to safeguard the interest of the domestic economy. These policies relate to the employment, development of capital, and regulations on the economy with a view of setting a structure which will enable the country benefits from within.
There can be the use of tariffs so as to ensure that the economic nationalism is enhanced. The united states have their own way of regulating foreign trade, especially countries which they all engage in the trade.
Through international trades, the U.S. government is set to benefit from more capital in the country, which will generate more income for the country. The employment sector will also increase due to international trade.
Through international trades, there is the improvement of the countries competitiveness as a country will specialize in its best production. The implementation of the country’s economic nationalism will hinder the enhancement of technological innovation. The availability of various goods will be enhanced in the country besides excellent levels of standards.
Trade barriers limit the country’s access to free trade on the international level. Reducing or absolute removal of the trade barriers is necessary for the U.S economy. The policies in the U.S are good, which enhances the international trade as well as promoting the welfare of the American citizens.
The policies safeguard the environmental matters, the labor-related issues as per the required principles globally. The barriers to trade hurt the economies to a greater extent and making it inevitable to meets its obligation to the entire nation (Rourke 213).
The mostly used barriers to trade include the imposition of trade tariffs, embargo, and subsidies. The most sectors which are affected by the trade barriers are the import and export sectors. The companies or organizations which rely on imports or exportations will be deeply affected.
The employees would have to be laid off as a result of stiff measures of the trade barriers in the affected sectors. This is a negative impact on the economy in the United States, which will be of great hindrances; hence, it’s a disadvantage, however, how much the government is seeking to safeguard other interests of economic nationalism.
The trade liberalization in the U.S. will increase the workforce in the overall economy. The country’s labor force would benefit up to the tune of 15% of the total employees in the economy.
The united states government will not be in a position to offer all that the population demands at all times; hence, there is a need for international trade. The U.S. is a big economy throughout the world, and it’s because it has always embraced the power of international trade.
The current world depends greatly on international trade as it promotes the domestic economy and technology. These bring together the entire world to be relatively nearer to one another, and transactions would be made easier.
NAFTA should be continued by the U.S since the government can aim at getting more business activities with the developing economies. This is very important as it would increase the growth of the U.S economy at a later date since they are increasing their market and their purchasing power.
The trade balance is a component of GDP; it refers to the difference between the total exports and imports of a country during a specific period of time, usually one fiscal year. It comprises all economic transactions between residents of one country and another. If the imports of a particular country are more than the exports, there is an unfavorable balance of trade.
This occurs when a nation is growing rapidly than another trading partner. The environment leads to an inflow of capital that causes nations’ currency to appreciate because the economy offers an opportunity for investments than elsewhere. The trade surplus is realized when the worth of exports is more than the worth of imports of two trading nations.
The balance of trade has experienced an unfavorable condition, especially this year, in February worth $39.7 billion. The United States has been one of the top three economies in the world in exports for a long period of time now. If the firms and individuals in the US purchased all their products without importing any products, it would lead to an increase in the revenue.
In additional unemployment rate would decrease because production is focused on firms in the United States. Therefore international trade has created jobs in foreign countries than could have been created in the U.S. There are some benefits for international trade for the country in the industries that the U.S has a technological advantage.
Interdependence on the economic perspective is of great benefit to the entire economy of the U.S as well as to other countries as all benefit from it. International trade is a good measure of creating and building excellent relations with other nations, which will increase the trade benefits and its involvement.
The country can establish the ties which will enable them to specialize in particular production of a commodity; hence, there is an optimum return on the production. There will be a balance of trade as a result of international trade since the country will be able to import what it needs and be able to export those who are in excess.
Rourke, John. International Politics on the World Stage. 12th ed. Canada: McGraw-Hill Education, 2006.
Leave a ReplyWant to join the discussion?
Feel free to contribute!