International trade has grown exponentially since the end of World War II for several reasons. First, the growth of the global economy and the development of new technologies have made international trade of goods easier than ever before. Companies can now access a much larger market than they could before, which increases their potential profits (Milner, 2021). Additionally, the growth of the internet has enabled global e-commerce, allowing businesses to quickly and easily trade with customers worldwide. This has led to lower costs and more efficient distribution of goods.
Second, the implementation of free trade agreements has also played a significant role in the growth of international trade. These agreements have removed many barriers to trade, such as import/export taxes and tariffs, which have made it much easier for companies to do business across borders. Third, the expansion of international transportation networks has significantly facilitated the movement of goods from one place to another (Milner, 2021). This has enabled companies to ship goods from one country to another in a significantly shorter amount of time and at a substantially lower cost.
In terms of its impact on the U.S. economy, the growth in international trade has been both a benefit and a detriment. On the one hand, it has led to increased economic growth and job creation in the United States, as the country is able to export goods to other nations. On the other hand, it has led to job losses in certain sectors, such as the manufacturing sector, as companies have relocated production to countries with lower labor costs (Roberts et al., 2019). Overall, the growth in international trade has had both positive and negative impacts on the world and U.S. economies. However, the benefits of increased global trade outweigh the costs, as it has led to increased economic growth and improved living standards worldwide.
References
Milner, H. V. (2021). Resisting protectionism: Global industries and the politics of international trade. Princeton University Press.
Roberts, A., Choer Moraes, H., & Ferguson, V. (2019). Toward a geoeconomic order in international trade and investment. Journal of International Economic Law, 22(4), 655-676.