A thriving economy is one in which consumers have access to worldwide markets where their purchasing power goes a long way. International trade is essentially the exchange of goods and services across many nations worldwide. Purchasing products such as technology, automobiles, or pharmaceuticals that are only available through international trade is part of what makes it great for customers looking for specific products. Here we will discuss just how global trade benefits consumers.
How Consumers Benefit from Global Trade
Stimulates Economic Growth
Global trade expands the markets to include a more excellent range of products, goods, and services. An economy needs consistent growth to maintain and increase its market value. A nation's economic power and prosperity are secured with strong international trade. This importance is highlighted by the fact that out of the 300,000 businesses in the US that participate in global exports, 98% are small to medium-sized. This makes international trade a crucial component of US economic influence and power.
Greater Variety of Goods for Consumption
Through international trade, consumers have access to a broader range of products and goods that they wouldn't be able to find domestically. More choices mean more purchasing power for the average buyer. Access to high-quality products found outside of the United States increased the likelihood of a better quality of life and created more economic prosperity domestically.
More Employment
Increasing wages and employment opportunities for citizens doesn’t just happen within our borders. Beyond international borders is where the most options for economic growth are found. Global trade invariable opens the door for greater employment growth. A study by Trade Partnership Worldwide showed that over 40 million jobs were directly impacted by international trade in 2018. More jobs certify a growing economy stimulated by selling products, goods, and services to nearly 95% of the global population.
Consumption at Cheaper Costs
Manufacturing and production costs can be higher when made within the United States, while items produced in countries outside of the US are more affordable than ones made locally. International products and goods mean consumers can purchase products at a lower price.
Better Use and Allocation of Resources
International trade consumer benefits are vast and include safer environmental impacts. The ability to save essential resources and avoid replication of resources is very beneficial. As products are produced outside the US borders, it helps avoid harmful substances being released into the environment and atmosphere and gives countries an advantage in the global market.
How Global Trade Affects Consumers
Undercuts the Prices of Local Farmers
Who benefits from international trade? Indeed, customers across the globe do, but invariably, there are risks to others. In places such as the United States and the European Union, the government gains more economical control of agriculture, and local farmers struggle to compete. International trade results in the prices of products created by local farmers being cut.
It Might Lead to Job Outsourcing
One of the potential risks of participating in the global market is the potential for domestic jobs that are usually reserved for citizens to be outsourced to low-wage countries. Many US businesses resort to this practice to lower costs of operation. This inevitably leads to mass lay-offs, increased unemployment rates, and forces relocation for US citizens.
May Lead to Countries Losing Agriculture Base
Local farms and businesses are having to compete with large-scale agricultural companies. Countries that have relied on a more traditional economy could lose their independence from domestic farms as more developed nations subsidize them. Local farmers have the difficult task of competing with larger and more powerful global agriculture companies.
US International Trade
Over $2.5 trillion was produced in the United States through exports in 2019. Out of its Global Domestic Profits (GDP), it accounted for close to 12% overall. Most of what the US produces domestically is bought and consumed within its borders. Therefore, as much as it makes, it imports more than it exports. According to a Bureau of Economic Analysis report, products, services, and goods imported into the US amounted to over $3 trillion.
US Trade Agreements
Countries interested in participating in trade together need to form a trade agreement to secure a solid and beneficial economic relationship. There is no bigger deal than NAFTA (North American Free Trade Agreement). This deal involves Canada, Mexico, and the United States. Another well-known deal valued in the trillions in imports and exports is the Trans-Pacific Partnership or TPP agreement. This trade deal includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
How Working With ATI Can Bring Benefits to Consumers
If you want to get top-notch exporting services, you should consider ATI. American Trading International, Inc. offers quality and expert trading services to new and existing markets. Knowledge and experience in domestic and international companies provide global market opportunities. For flawless and profitable transactions, ATI offers reliability and extensive market experience. ATI will secure the best consumer benefits with a comprehensive network of businesses, shipping logistics services, and government-back trade finance.
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