StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Interregional Trade in the USA - Essay Example

Cite this document
Summary
This essay "Interregional Trade in the USA" focuses on the United States becoming an economic power with the expansion of domestic markets, as the set of regional economies integrated to form a national economy consequently making the U.S. economy the leading industrial nation in the world…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Interregional Trade in the USA
Read Text Preview

Extract of sample "Interregional Trade in the USA"

Since the early 19th century, the United s has served as a global model of economic progress. An expanding population permeated with a strong sense of individualism and competitive spirit, eagerly exploited the seemingly limitless supply of land and natural resources, producing technological innovation and unparalleled economic expansion that elevated the quality of life for most of its citizens (Ratner et al, 2003). One of the major factors credited for making the United States the economic, industrial, and trade giant that it is, was domestic trade or the internal market that existed among the different regions that made up the Early Nation.

The growth of the United States economy in the period from 1790 to 1860 can be seen in terms of expansion and growing complexity (Suranovic, 1997). The local market relations that existed before canals and railroads were personally run on trade and a mixture of cash and barter. With the growth of the South’s cotton industry in the period after 1815, the country branched out and developed an interregional trade system that was structured around a growing number of banks and currencies (Whitman, F.K., 2000, p. 535). Between 1807 and 1815, U.S. foreign trade was severely disrupted by Jefferson’s trade embargo, subsequent non-importation measures, and the War of 1812.

These disruptions are commonly believed to have spurred early U.S. industrialization (Zuckerman, 2006). Because of the aforementioned disruptions, especially the embargo, domestic industry was encouraged, and emerging local industries were protected from import competition by preventing foreign manufactured goods from reaching the U.S. market (Davis, J.H., 2003, p. 228). Due to the resulting trend of interregional trade, new manufacturing firms were established and existing domestic producers rapidly expanded output to replace previously imported goods (Zuckerman, 2006).

Interregional trading also led to the American economy becoming industrialized, first in the Northeast, in order for inter-region commerce to become more convenient (Herbst, 1997). New inventions and capital investment led to the creation of new industries and economic growth. As transportation improved, new markets continuously opened. The steamboat made river traffic faster and cheaper, but the development of railroads had an even greater effect, opening up vast stretches of new territory for development.

Furthermore, the United States became an economic power with the dramatic expansion of domestic markets, as the set of regional economies integrated to form a national economy consequently making the U.S. economy the leading industrial nation in the world.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic history Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Economic history Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1539088-economic-history
(Economic History Essay Example | Topics and Well Written Essays - 500 Words)
Economic History Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1539088-economic-history.
“Economic History Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1539088-economic-history.
  • Cited: 0 times

CHECK THESE SAMPLES OF Interregional Trade in the USA

The Middle East and North Africa Market Development

However, MEENA's interregional trade is accountable for less than 10% albeit slightly over the trade-in 1960 (Cashin, Mohaddes, and Raissi, 2012).... Integration through Commodity trade and Service trade: According to the World Bank from 1995 to 2007, the trade output shares of MENA have shown a significant increase from 54% to 79%.... However, in the context of integration of commodity and service trade MENA region is less aggressive as compared to other regions of the globe....
10 Pages (2500 words) Case Study

Financial Market Integration and Macroeconomic Volatility

Regional economic integration envisages the removal or reduction of duties and other taxes imposed on goods and services trade between countries.... This basic infrastructure is the major facilitator for trade, investment, and development.... When neighbouring countries increase trade with each other, they develop infrastructure such as roads, railways, etc.... Increased trade brings prosperity to all countries involved which boosts employment (Booz & Company, 2012)....
10 Pages (2500 words) Case Study

Jordan and the USA Free Trade Agreement

The paper "Jordan and the usa Free Trade Agreement" describes that the economy of Jordan includes a lack of investment capital and a small domestic market.... the usa-Jordan Free Trade Agreement (FTA) was signed making it the first FTA to be signed between the United States of America and an Arab nation.... These factors increase the need to sign trade agreements with more developed countries.... trade agreements may involve two countries reducing tariffs on each other's goods or reducing bureaucracy by simplifying the procedures on imports and exports (Miller, 2004)....
10 Pages (2500 words) Essay

The issue of regional currency unification

Additionally, the region has to do away with distortions that bar inter-regional trade and investments for a successful economic integration to occur.... This paper will explore the issue of regional currency unification in the gulf countries.... The paper affirms that unification of gulf currency may boost economic efficiency, further economic integration and develop a non-oil economy in the region....
24 Pages (6000 words) Essay

Hecksher-Ohlin Model and its Variations

The Heckscher-Ohlin model is a general equilibrium mathematical model of international trade, developed by Eli Hecksher and Bertil Ohlin.... It builds on David Ricardo's theory of comparative advantage by predicting patterns of trade and production based on the factor endowments of a trading region.... he Ricardian model of comparative advantage has trade ultimately motivated by differences in labor productivity using different technologies.... Ricardo considered a single factor of production (labor) and would not have been able to produce comparative advantage without technological differences between countries (all nations would become autarkies at various stages of development, with no reason to trade with each other)....
5 Pages (1250 words) Assignment

Globalization as the Concept of Moving Towards Single-World Society

Globalization is integration through international trade of goods and services with the help of certain measures and regulations. ... he traditional international trade theories were concerned with the flow of goods between countries in terms of comparative advantage.... The major drivers of globalization include social-demographic (regional, cultural), technological, which includes telecommunications, internet and transportation, economic factors like foreign direct investment, profit motives and market share, ecological and environmental factors like pollution and green laws, and political-legal factors like falling trade barriers, political stability and intellectual property....
4 Pages (1000 words) Essay

Real Income convergence Across states

This paper provides a regression analysis that updates what Barro and Sala-i-Martin found out in their study “income convergence across states”.... We acknowledged that their study found that states nominal income per capita was a converging series.... .... ... ... Moreover, they did not put into consideration the disparity in the cost of living across states....
9 Pages (2250 words) Assignment

The Basis of International Trade

This paper aims to analyze to what extent both David Ricardo's and Heckscher and Ohlin trade theories explain the patterns of trade in the real world.... In the early 19th century David Ricardo, inspired by Smith's theory, offered an explanation of trade in terms of international differences in labor productivity, known as a comparative advantage (Krugman and Obstfield, 2006, p.... The paper 'The Basis of International trade' focuses on the theories of international trade that have been developed through the decades of years along with the development of world economics....
8 Pages (2000 words) Term Paper
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.
Contact Us