International Trade Benefits for the US Economy


International trade refers to the exchange of goods and services between and among countries. It involves using the global markets to deliver products that are not available in some countries and to move products from countries with excess supplies to countries with fewer supplies of commodities. Many states have benefited from international trade, whereas there have been some drawbacks of trade to many countries.

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The Importance of International Trade to the US Economy

The United States has benefited from international trade, which has brought about the rapid growth of the economy. The country has maintained its first position in the global economy due to its improved trade systems. Since the Second World War, the government has been very supportive of the trade systems, which has improved the economy and facilitated the growth of the economy of other countries (McConnell and Brue, p. 679).

International trade has improved the gross domestic product of the United States’ economy by increasing the volume of production. Improvement of the trade patterns of a country improves the volume of output made by a state. The US economy has been performing well for an extended period, which has been facilitated by the excellent marketing systems and the open trade system allowed by the government.

The volume of production has been increased by the trade of goods and services between countries and the US. With the expansion in the international markets, there is growth and development of the markets for all products in the global markets because the US serves as the primary economic market for all countries in the world. Also, trade barriers have been eliminated by most states, and this has facilitated trade among various countries. Some of the measures that have been taken are the removal of tariffs, which have inhibited trade among countries (McConnell and Brue, p. 678).

Countries produce commodities according to their comparative advantage. This means that countries with an edge in manufacturing certain products can sell the products to countries with fewer advantages. Some states have resources required to manufacture specific products, which provides them with an adequate advantage to produce them at a more significant profit than any other country. According to comparative advantage, production has improved the productivity of lands in terms of quantity and quality. Governments have become dependent on each other due to the concept of production based on comparative advantage. Countries depend on other countries on the supply of products, which they have less advantage to manufacture (McConnell and Brue, p. 677).

When countries experience trade deficits, they are encouraged to improve their production systems. Trade deficits are experienced when a country imports more products than it exports. This condition can be terrible for states because it encourages over-dependence on other countries to supply commodities. Over-dependence can cause an economic crisis in some countries, especially when the deficits are too high. Governments are encouraged to maintain a low trade deficit to have better financial positions (McConnell and Brue, p. 676).

Trade patterns refer to how countries exchange their products. With international trade, nations can exchange products with each other. The interaction between countries has enhanced good relationships among countries. The United States has traded with almost all countries globally, which has promoted the country’s economic status. Many countries trade with the US, which has enabled the country’s financial stability (McConnell and Brue, p. 676).

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International trade reduces the cost of products because countries manufacture products, which they experience the least cost. States have been encouraged to establish common currencies to enhance transactions in different countries. Some global organizations such as WTO, IMF, World Bank, and others have been found to ensure the financial systems of various countries are favorable to international trade. WTO was created to enhance the integration of countries into trading systems, which would strengthen the excellent flow of commodities. These organizations have been active in resolving financial disputes in the regions they serve. IMF and World Bank have helped many countries to recover from the financial crisis and have also fixed some conflicts between nations (McConnell and Brue, p. 675).

Factors that have facilitated the rapid growth of International Trade since WWII

Production, according to comparative advantage, has influenced the growth of trade among countries. Countries have been encouraged to produce products according to their capacity. The United States has the advantage of producing various products, making it a prominent market place for multiple commodities. Other countries have been producing products depending on the availability of resources, which has led to a specialization in the production of some products. This has improved the quality and quantity of products manufactured, and hence the demand for commodities has increased (McConnell and Brue, p. 678).

The changes in political environments have facilitated the expansion of international trade after the Second World War. Many countries have stabilized their political backgrounds, and this has created a free market economy. The freedom experienced in the global markets is facilitated by favorable political environments being experienced in many countries. Various trade policies have been created to encourage trade among nations.

Open trade systems have been encouraged, which has facilitated the movement of products and labor from one country to another. To enhance good trade habits, production quotas have been introduced to promote healthy competition among states. Trade quotas allow countries to export a certain percentage of their products to the global markets. This has improved the trade of products among countries because all countries have shared in the international markets (McConnell and Brue, p. 687).

Improved transport and communication has also facilitated the growth and expansion of various economies. Due to the improvement in the means of communication, many people can deliver information more efficiently. Communication is an essential item that facilitates the growth and expansion of global trade in international markets. When there is a free flow of information from one party to another, it becomes possible to develop the business structures.

On the other hand, the transport systems have been improved, which has increased the labor and products’ movement. After World War II, many countries developed their transport and communication structures, which enhanced trade with other countries. The United States has expanded its transport and communication systems, which has been a remarkable achievement in improving production and trade (McConnell and Brue, p. 689).

Improved technology has also promoted the growth of international trade. This has enhanced the production of better products, and this has facilitated trade among countries. Technology has also improved transport and communication systems. When people and commodities are easily moved from one place to another, they add value to the consumers. The demand for products has been improved, especially after introducing technologies that have facilitated the differentiation of various products. Improvement in technology has promoted outsourcing services because countries have been encouraged to improve production systems. Outsourcing has been a significant achievement in international trade, and many industries have improved the quality and quantity of products (McConnell and Brue, p. 691).

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Labor mobility has facilitated the trade of goods between countries. Skilled and non-skilled labor factors of production have been mobile after the Second World War. This has encouraged the production of commodities because labor factors are available in the production systems. Labor-intensive countries have been able to exchange their services with capital-intensive countries. The migration of people from one country to another has been experienced after improving trade among nations. This movement has enhanced the introduction of favorable labor policies by governments (McConnell and Brue, p. 688).


International trade has been of great importance to many countries, and this has developed the economies of various governments. Countries must maintain a good relationship with each other so that they can trade effectively. The integration of economies has been an outstanding achievement, and this has facilitated trade among various countries. Therefore, governments should have adequate policies to enhance trade among other countries. To enhance better trade among nations, it will be necessary for governments to encourage the adoption of better technologies.

Work Cited

McConnell, Campbell R. and Stanley L. Brue. Macroeconomics: principles, problems, and policies, Volume 1. New Jersey: NJ, McGraw-Hill/Irwin, 2005.

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StudyCorgi. "International Trade Benefits for the US Economy." April 21, 2021.


StudyCorgi. 2021. "International Trade Benefits for the US Economy." April 21, 2021.


StudyCorgi. (2021) 'International Trade Benefits for the US Economy'. 21 April.

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