Nobody downloaded yet

The Impact of International Trade on U.S. Economy - Essay Example

Comments (0) Cite this document
Summary
The world has witnessed rapid economic regionalization in the last decade, as evidenced by the proliferation of free trade agreements among nations. By July 2007, the number of negotiated and effected agreements had risen to 205. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
The Impact of International Trade on U.S. Economy
Read TextPreview

Extract of sample "The Impact of International Trade on U.S. Economy"

Download file to see previous pages By July 2007, the number of negotiated and effected agreements had risen to 205. The United States has also had its share in the international trade (Peridy, 2005). She has entered into trade agreements with countries from Africa, South East Asia, and Europe. International trade brings along certain factors, which impact on the U.S economy, either favorably or unfavorably. Some effects of this trade include provision of new markets and access to goods and services at subsidized prices (Sun and Reed, 2009). In the present paper, the impact of international trade on the U.S economy is investigated. It is hypothesized that international trade favorably impacts the U.S economy. The literature reviews that follow will attempt to illustrate and support the hypothesis. Literature Review In a research article by Peridy (2005), three crucial questions were posed to guide the study. First, does the United States face a trade deficit with respect to Middle East and North American (MENA) countries? Secondly, has the deficit resulted from the Euro-Mediterranean (Euromed) agreement? Thirdly, what trade potential does the US hold in this area? (Peridy, 2005). The focus of the investigation is on the trade relations between the US and MENA countries, specifically favorable trade using a short, descriptive analysis. It is hypothesized that, the US will trade unfavorably with the MENA countries comparatively to other OECD countries. The investigation focused on market shares and export levels, and calculated several indexes of export position between the US and MENA countries. The result of this investigation agreed with the hypothesis that there was unfavorable US export performance with respect to MENA countries in comparison with other OECD nations. The result indicated that majority of MENA countries are ranked after other OECD countries in US export preference list. In comparison to other exporters, the US seems to export four-times lesser than the MENA countries (Peridy, 2005). The difference in trade between the US and MENA countries, and the US and Euromed countries may partially be attributed to the long distance between the US and MENA markets, which infers high transport cost to the trading partners (Peridy, 2005). The result of the relative market share also reveals the unfavorable position of trade between MENA countries and the US, with the US having potential in the MENA markets. It is also reported that exports from the MENA countries to the US has continued to dwindle. Contrastingly, the US preserved its favorable position relative to the other OECD countries (Peridy, 2005). These results come together to affirm the hypothesis that international trade favorably impacts on the US economy. One shortcoming of the study is that it relies on predictions that are prone to change (Peridy, 2005). It rests on out-of-sample predictions that calculate what proportion of MENA countries’ exports if they would have behaved akin to countries fully incorporated into the world economy. However, this approach may deter the ambiguous interpretation of residuals. Next, the topic of measures of international relative prices in relation to its impact on the US economy is discussed with China as the primary point of reference. In a research article by Thomas, Marquez, and Fahle (2009), several specific questions are addressed. First, is there a disparity in pricing between exports from China and those from her trading partners? Second, does the World Development Indicator (WDI)’s new price index affect the appraisal of USA’s international relative prices? Third, does the weighting scheme employed in aggregating prices ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Impact of International Trade on U.S. Economy Essay”, n.d.)
The Impact of International Trade on U.S. Economy Essay. Retrieved from https://studentshare.org/business/1446151-the-impact-of-international-trade-on-us-economy
(The Impact of International Trade on U.S. Economy Essay)
The Impact of International Trade on U.S. Economy Essay. https://studentshare.org/business/1446151-the-impact-of-international-trade-on-us-economy.
“The Impact of International Trade on U.S. Economy Essay”, n.d. https://studentshare.org/business/1446151-the-impact-of-international-trade-on-us-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Impact of International Trade on U.S. Economy

Political International Economy: Free Trade or Isolationism Avoiding Trade Wars

...will intend to describe the impact of free trade along with its relation to politics. The objective of the paper is to analyze the aspects of free trade and also to describe the methods through which the trade wars can be avoided in today’s 21st century. Discussion Trade Wars Free trade creates international competition among organizations which often results in layoffs and indolent plants. It creates difficulties for national capital cities which rely on industries of neighbor countries for occupation and tax income. However, nothing in the international economy remains identical in the...
5 Pages(1250 words)Essay

Political Economy of International Trade

...trade and states must be ready to relinquish their sovereignties, become trapped in the international community for them to be real actors in international trade2. The argument put across by many students of international relations where political economy of international trade is common is that interdependence among nations is not a recipe of state policies and choices, but rather a matter that nations could not do without due to the existing international systems that are beyond reach. This concept is explicit in the balance-of-power theory that discusses the impact of interdependence...
8 Pages(2000 words)Book Report/Review

What direct global impact did bailing out the U. S. banks have on the world economy

...of the Business of the Concerned July 7, Bail Out of the US Banks and the World Economy It was on October 3, 2008 that the Senate passed the bailout package amounting to $700 billion. The government premise was that it was imperative to extend the bailout package as it intended to save the economy and the credit crunch was really making things worse at a global level. On the one side a section of the society was really concerned about the fact that those financial institutions that were responsible for the economic debacle were being bailed out. Yet, it was also a fact that the economic meltdown was impacting the economies at a global level and threatened the livelihood...
2 Pages(500 words)Essay

International Trade - World Trade

...International Trade As reported by the World Trade Organisation in 2005, world trade in merchandise grew at an average of 7 percent per year between 1955 and 2004. Identify and critically discuss four factors that may have contributed to this over this period. 30% (600 WORDS) Much have been written about the factors contributing to the marked growth of trade between the years 1955 and 2004. Several factors have been mentioned and speculated to have contributed to such growth. However, I personally believe that the four factors that may have contributed to the growth in merchandise in world trade between 1955 and 2004 are the following,...
8 Pages(2000 words)Essay

The UK Economy and International Trade

...from another country, but rather produce it internally. Likewise, a country that could not produce a good (or service) within its borders, or could do so only at a high cost, would find it more cost-efficient to import this good (or service) from abroad. Thus, UK has comparative advantage over the United States in the manufacture of medicinal preparations and passenger cars. On the other hand, it has a comparative disadvantage to the US in the production of fuel oil and precious metals. There are economic benefits involved in international trade. According to Wiens, these fall within two aspects: (1) comparative advantage (as developed by David Ricardo), and (2)...
8 Pages(2000 words)Essay

U,S Economy Change Before and After WWII Ended

...Running Head: US ECONOMY AND WWII The Second World War, together with the Great Depression forms the most essential of the 20th Century’s economic and poitical events. During the war most global nations experienced deeply felt impacts. Despite the fact that most economies were wrecked by this war, the US economy emerged stronger, and the federal government got out of this war a huge potential. The government of the day was able to make the economic activities more regulated, which led to the economy facing partial consumption and spending control. The WWII led to the reawakening of the American Industry, as well as having the greater part of the sectors...
1 Pages(250 words)Essay

U. S. Constitution

...US Constitution s right in American political system refers to the political rights reserved for the governments. Even though America asa whole has a federal government, each state in America has separate state governments. US constitution provides some specific rights to the state governments in law making even though all the state governments are operating under the federal government. The rights of the state government are protected by the tenth amendments (Part of bill of rights) in US constitution. According to The Tenth Amendment to the U.S. Constitution; “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States, respectively, or to the...
1 Pages(250 words)Essay

The U>S Legal System

... Legal Issue and a Strong and Substantiate Argument in Support of Your Opinion Task The case is centered on two counts: counts of murder and burglary. On the count of murder, the defendant is accused of the first degree murder. First-degree murder, in most states, is an illegal killing that is both premeditated and willful, meaning that it was committed after "lying in wait" or planning for the victim. In this case, the deceased had earlier wanted to dispose of some of her diamond rings, though not clear. The defendant may have been involved in the deal and latter planned to kill her for the rings. That again introduces another crime committed – burglary. Based on the evidence provided, the defendant broke into Stella Blauvelt’s... Legal...
1 Pages(250 words)Assignment

U. S. Education Today & Tomorrow

...U.S Education Today and Tomorrow Increased globalization The neoliberal form of globalization which ideologically is supported by international organizations is seen to manifest in many educational agendas (Burbules & Torres, 2000). This is evident in the policies that direct evaluation, standards, training of teachers, finance, testing, curriculum and giving instructions. In addition, the popular trends in education like the policy of choice, privatization, decentralization in education and the international function of organizations in the educational system are as a result of increasing globalization. Furthermore, the understanding of race and multicultural issues has grown rapidly due to globalization...
3 Pages(750 words)Assignment

U S History

..."Crisis of Confidence" in the United s The United s was a dominant world power in the 1970’s even though the countries self-perception was mired in doubt and malaise. The stagflation of the country’s economy, the experience and results of the Vietnam war, the lack of confidence of the government by the people as it was no longer perceived as a champion of freedom, the Watergate imbroglio all contributed to the “crises of confidence” in the country. The debt on the dependency of US citizens and the government increased resulting to difficult times. Jimmy Carter came into power at the time after the country’s failure in the Vietnam and Watergate scandals. A leadership...
2 Pages(500 words)Admission/Application Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Impact of International Trade on U.S. Economy for FREE!

Contact Us