International Trade Vs Import Analysis

As everyday consumers, the nation has lost sight of the importance that international trade has on every day lives. Our nation has become so accustomed to having imports, which can be defined as goods and services that are produced abroad and sold domestically, which in this case would refer to such as electronics, automobiles, and other textiles such as fabric, at our daily reach that if not for international trade, would become unavailable to us. However, this does not mean the United States would not be able to produce such items, but instead assures focus on the specific items they produce in terms of exporting goods. On the other hand exports can be referred to as goods and services that are produced domestically and sold abroad. Therefore, …show more content…
For example, the United States can determine which services and goods have comparative advantage of production, which refers to the ability of producing a good or service at a lower opportunity cost than any other producer. When referring to international trade, the concept of comparative advantage, highly benefits both countries. For example, by allowing the United States to focus their production of refined petroleum, it allows for the needs of their own citizens to be met as well export to other counties where the United States would benefit because of higher prices. Therefore, the two counties participating in the tradeoff result with a net gain. Roles reversed, say the U.S has a higher demand for a certain product they could import the good to meet domestic demand cheaper. Based on the opportunity cost and comparative advantage concept, all countries participating in international trade are highly benefited. As well as participating in international trade would positively impact the trade balance, or the value of a nations exports minus the value of its …show more content…
economy would be highly benefit in international trade with china due to the increase in the market surplus as well as allowing for the citizens of both countries to have an increasing variety of foods and services available. As well as taking into consideration the opportunity cost it would take for the United States to produce certain items as well as the influence the comparative advantage on the production of these services and goods throughout the world it is important for the United States to participate in international trade with china due to the ever increasing demand throughout the nation. Lastly, participating in international trade allows for ideas and new discoveries to better this world as a