How The Economy Works
How the Economy Works
ECN221
November 2013
How the Economy Works
Our economy today is intertwined with “International trade; this trade is possible due to technology that makes it easier to communicate and coordinate the transfer of goods and services across territories”. In order for the US to maintain “the largest economy and the largest export and import of goods and services we must have an open economy to continue our prosperity with increasing economic growth which raises the standards of living. An open economy facilitates a vigorous competitive trade market that ensures the US remains the best place in the world to do business” .
An average American lives day to day without thought of imports and exports we merely go shopping and take of our wants and needs. However because of international trade with countries such as “Canada, Mexico, China, Japan and the United Kingdom we live a comfortable lifestyle. The study of macroeconomics shows us that Canada is our largest exporter” and our “second largest importer” . With a combined $705.8 billion in export and import our Canadian trade balance deficit is reduced by $2 billion in 2011” . There are trade balance deficits in each of the seventy-five countries the United States trades with another instance is “China’s exports to America amounted to $444.4 billion making it the largest importer” while Japan was the United States ' 4th largest with a combined $195 billion in export and import that gave the United States a trade surplus of $22.2 billion in 2011” . Although Poland is America’s lowest exporter at $4.8 billion in 2011 with “importing at 3.8 billion in 2012” voluntary trade benefits all traders and is a viable sources at all levels of economic trade.
The United States top imports consists of “oil as number one and number ten being plastics that is a combined purchase of $2.334 trillion worth of imported products” . The gains international trade provides to countries far outweighs
ECN221
November 2013
How the Economy Works
Our economy today is intertwined with “International trade; this trade is possible due to technology that makes it easier to communicate and coordinate the transfer of goods and services across territories”. In order for the US to maintain “the largest economy and the largest export and import of goods and services we must have an open economy to continue our prosperity with increasing economic growth which raises the standards of living. An open economy facilitates a vigorous competitive trade market that ensures the US remains the best place in the world to do business” .
An average American lives day to day without thought of imports and exports we merely go shopping and take of our wants and needs. However because of international trade with countries such as “Canada, Mexico, China, Japan and the United Kingdom we live a comfortable lifestyle. The study of macroeconomics shows us that Canada is our largest exporter” and our “second largest importer” . With a combined $705.8 billion in export and import our Canadian trade balance deficit is reduced by $2 billion in 2011” . There are trade balance deficits in each of the seventy-five countries the United States trades with another instance is “China’s exports to America amounted to $444.4 billion making it the largest importer” while Japan was the United States ' 4th largest with a combined $195 billion in export and import that gave the United States a trade surplus of $22.2 billion in 2011” . Although Poland is America’s lowest exporter at $4.8 billion in 2011 with “importing at 3.8 billion in 2012” voluntary trade benefits all traders and is a viable sources at all levels of economic trade.
The United States top imports consists of “oil as number one and number ten being plastics that is a combined purchase of $2.334 trillion worth of imported products” . The gains international trade provides to countries far outweighs
Cited: Executive Office of the President. (2013). Benefits of Trade. Retrieved from Office of the United States Trade Representative: http://www.ustr.gov/about-us/benefits-trade Executive Office of the President Executive Office of the President. (2013). Countries and Regions. Retrieved from Office of the United States Trade Representative: http://www.ustr.gov/countries-regions Executive Office of the President Unknown. (2010, April 8). Countries Sanctioned By The U.S. - And Why . Retrieved from Investopedia: http://www.investopedia.com/financial-edge/0410/countries-sanctioned-by-the-u.s.---and-why.aspx Unknown Unknown. (2013). Syria GDP Annual Growth Rate. Retrieved from Trading Economics: http://www.tradingeconomics.com/syria/gdp-growth-annual Unknown Unknown. (2013). What Is the Impact of International Trade? Retrieved from wiseGEEK: What Is the Impact of International Trade?