The quarrel Over Trading Internationally and Its Significance on the United States Economy

1330 Words6 Pages
One of the most crucial arguments that has arisen over the last decade is the quarrel over trading internationally and its significance it has on the United States economy. Once upon a time, countries were more independently based. They relied more on the producers and consumers in their home countries than they did trade. Over the last 35 years the United States has progressively began to expand internationally by trading. Today, virtually all nations and their economies depend heavily on each other. Throughout this paper, we are going to examine and distinguish how competition from foreign producers can affect consumers in the United States, and how trade barriers can affect the realization and specialization of global economies at a large scale.
The United States has began to initiate a mushroom of trade with countries from all over the globe, which vary not only in size but in amenity and services as well. As a result, over the last 30 years the United States has imported more than it has exported. Imports vary from TVs and computers to automobiles and electrical equipment.
In 1994, a deal over free trade was enacted by Canadian Prime Minister Jean Chrétien, President Bill Clinton, and Mexican President Carlos Salinas. This deal was better know as NAFTA, North American Free Trade Agreement. The main purpose of NAFTA was to terminate any taxes that were placed on a product that was being traded between America, Mexico, and Canada. The agreement wasn’t implanted fully until January of 2008 because the rules of the agreement allotted the tariffs to be put into place in an orderly and timely fashion. Today, twenty years later after it was first put into action, NAFTA has assisted United States, Mexico, and Canada by stimulatin...

... middle of paper ...

...d. Within the United States Economy many difference aspects affect the overall effectiveness and level of prosperity. Competition and the use of trade barriers are arguably two of the most important factors and the two single biggest effectors on economy and the consumers and producers.

“NAFTA’s Economic Impact.” cfr. Sergie, Mohammed, 14 Feb. 2014. Web. 21 April 2014.

C. Guell, Robert. Issues in Economics Today. 6th ed. New York: McGraw-Hill, 2012. Print.

Russell Roberts, "Treasure Island: The Power of Trade. Part II. How Trade Transforms Our Standard of Living." December 4, 2006. Library of Economics and Liberty. 21 April 2014.

“Definitions and Basics.” econlib. n.p., n.d. Web. 21 April 2014.

Sanders, Nick. “Absolute and Comparative Advantage And Gains from Trade.” (2005): 1-3. Web. 21 April 2014.

    More about The quarrel Over Trading Internationally and Its Significance on the United States Economy

      Open Document