Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Importance of international trade
What is the importance of international trade on the economy
Importance of trading in the united states
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Importance of international trade
The Downward Spiral of the United States Economy In the world to date, there seems to be an increase of world governments needing bailouts, and people of the world needing assistance from the United States. This idea has caused many Americans to come to the conclusion that if the United States closed off borders to foreign trade, it would increase it’s standard of living and make America more profitable. However, this idea is false. The United States must not close off it’s borders to foreign trade because if trade borders were to close, American manufacturing plants would begin to shut down, the American transportation system and public services would suffer resulting in American job loss. If the US closes off borders to foreign trade, manufacturing companies would feel a financial strain, causing potential job loss. Manufacturing companies in the US rely on profits from selling products in foreign markets and on many foreign goods to assemble those products. If businesses are not able to import their needed materials, then they would not be able to produce the products, both wanted and needed by both Americans and foreign buyers. Job loss would be inevitable and lead to many of the same problems seen today but on a grander scale. Job loss, homes in foreclosure, and the people who still have jobs would be living from paycheck to paycheck. If manufacturing were to halt nationwide, nearly everyone would feel the financial strain, even the ones who do not feel it now. Manufacturing companies stores would have a decrease in the products they supply, and the products still available would be much more expensive. Closing the borders to international trade will cause financial strain and job losses in the manufacturing sector. If the... ... middle of paper ... ...arriers America would see an increase in profit by another fifty percent (United “Economy”). So instead of closing international trade borders, Americans should be thinking about the positive aspects of foreign trade. Americans need to realize how important importation is to the national economy and that without it the United States would not be the great country that it is today. Works Cited “ASCE Assesses Infrastructure Crisis.” Professional safety 52.11 (2007): 6-. ProQuest Research Library. Web. 1 Nov. 2011. Lugar, Dick. “The Story of Oil: Top 10 Questions about the History, Development, and Problems of Oil.” n.d. Web. 25 Oct. 2011. United States. Energy Information Administration. “25th Anniversary of the 1973 Oil embargo.” 7 Mar 2000. Web. 1 Nov 2011. - - -. Office of the United States Trade Representative. “Economy and Trade.” n.d. web. 25 Oct. 2011.
After the Second World War, the world was more interesting in oil than ever before. The conflict itself made the countries of the world realize that oil was a serious factor in the quest for power. From this point in history, oil was considered the driving force behind a successful economy and therefore attaining power. Therefore the quest for oil heightened during and after World War II. In the effort to acquire more oil, many countries began to seek out additional locations to drill and this drove the United States to the Middle East. In late 1943 a man named DeGolyer who was a geologist went on a mission to Saudi Arabia to survey the possibility for oil. His mission there concluded that “the oil in this region is the greatest single prize in all history”. With such a conclusion it is not surprising that the United States began extremely concerned with the oil concessions there.
U.S. Government. "2012 World Oil Consumption." Countries. U.S. Energy Information Administration, 2012. Web. 03 Dec. 2013. .
Trade is essential to overcome the dollar gap that prevented foreign marketing of United States goods (Melanson and Mayers, 159). There are many economic issues which face the nation at this time. A recovery from World War II and the Korean War, a recession, a change in the political party of the president, and several other issues. Thus, this must be a time of strong economic leadership. The policies made and legislature passed must steer the United States through this apparent storm and give the nation a chance to rest from the hecticness of the first half of the century.
When we look at just a few of the specifics of our trade with the U.S., we find that:
In 1908, the U.S. Geological Survey (USGS) predicted that the total future supply of U.S. oil would not exceed 23 billion barrels. In 1914, the U.S. Bureau of Mines predicted that only 5.7 billion barrels of oil remained. In 1920, the USGS proclaimed the peak in U.S. oil production was almost reached. In 1939, the Department of Interior declared that there was only 13 years of oil production remaining. In 1977, President Jimmy Carter claimed, “We are now running out of oil.” Despite these predictions, the U.S. has produced over 200 billion barrels of oil since the early 1900’s. (The Futurist, 1997)
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
As long as NAFTA has been in existence, there has been controversy over its benefits and costs. Since NAFTA is viewed as a neoliberal trade and investment agreement, supporters and critics alike are able to expand its validity to a grander scale when dealing with the question of whether free trade itself is beneficial or harmful. During the life of NAFTA, many valid arguments for and against free trade have been brought to the forefront.
"Economy & Trade." Office of the United States Trade Representative. Office of the United States Trade Representative, n.d. Web. 19 Apr. 2014.
As Ian Fletcher pointed out in Free Trade Doesn’t Work: What Should Replace it And Why, nations need a well-chosen balance between openness and closure toward the larger world economy (Fletc...
"Just How Reliant Is the US on Foreign Oil? | GDS Publishing." Oil and Gas News | GDS Publishing. Web. 26 May 2011. .
The modern world of today runs on fossil fuels with crude oil being the live blood of industrialized countries. Though much of the twentieth century old was plentiful easily acquired and low in cost it has only been in the past thirty years that we have seen oil prices rise substantially. This can be attributed to many different reason. These price changes have challenged the industrialized world to become more creative with their techniques of both acquiring oil and using it.
Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...
...y supply and this causes the collapse in the U.S. and elsewhere (Pinnell, Lecture notes, 3/23). Consequently, countries become very protectionist to protect firms at home and international trade collapses (Pinnell, Lecture notes, 3/23). Therefore, states must make decisions with reciprocity and consequences in mind (Pinnell, Lecture notes, 3/23).
Davar Venouss, C.K. Walter and A. Frank Thompson, «OPEC’s Goal and Strategies», International Journal of Middle East Studies 16, 2 (1984): 199-206
...n. "Twenty Years after the Embargo US Oil Import Dependence and How It Can Be Reduced." Energy Policy 22.6 (1994): 471-85. Print.