Why Consumers Need Trade

Decent Essays
Consumers all want the services and goods that satisfy their needs or wants. This can be difficult to obtain as a country or nation if it is to only rely on its own natural resources. This is why the world needs trade - to obtain the consumers wants and needs to help satisfy the nation. The idea around trade opens many options for new materials or products to be created. Trade is used for many products like a kid’s toy in the United States. These products are made outside a nations boarders and imported to be sold to a consumer who would like the new toy. Webster defines trade as “the activity or process of buying, selling, or exchanging goods or services” or also as “the act of exchanging one thing for another.” These definitions show that …show more content…
Census Bureau, Foreign Trade Statistics; Bureau of Economic Analysis, International Services; U.S. Department of Agriculture, Foreign Agricultural Trade of the United States. This can also be bad since the competition can be much wider since Free Trade Agreements works both ways. This makes a more competitive and stronger market making quality of products having to be above the others to survive. This is good for consumers since they are the ones receiving the better finished goods and services. Free Trade agreements are good for a competitive market and create economic flow. Trade agreements are also impacted by taxes put on goods and services. Consumers all know the word tax. It just means more money from the pocket to the government. The tariffs in the United States economy is much lower with the free market, so this creates a bit of conflict with the trade tariffs. “U.S. businesses must overcome an average tariff hurdle of 6.8 percent, in addition to numerous non-tariff barriers(NTBs),to serve the roughly 95 percent of the world’s customers outside our borders.” This source from the white house shows that the tariffs are hard to overcome. The FTA is big since it creates no conflict with the tax from outside boarder trading. This makes the trade agreements tough to track and keep an eye on with the different taxation in different …show more content…
The way a good GDP is created is through the consumers spending money on needs or wants that they feel need to be met. Some of these goods or services can only be acquired through the idea of trade. Trade with other nations even if their rules on products are different. This is why a trade agreement is a positive for all nations. The pros to a Trade agreement are the consumers’ needs are met, making them want to spend more money into the market on goods and services that they want. Then it also benefits in imports and export agreements with the expansion of products being placed out for consumers to choose from and creates a competitive market to increase the quality of products sold to the buyers. This all has positives and there is a bad side with nations having different tariffs on their goods and services. This can create a lot of conflict, but is the reason we need the trade agreements so that nations can create a better economy for everyone. Trade agreements all around are good for all nations to be in to help satisfy the consumers’ needs and wants. When the consumers’ needs and wants are met, this creates a good flow in the

Related Documents

  • Decent Essays

    So the country produce goods in large scale and this leads to reduce cost of the production as well as price of commodities. International trade increase the efficiency of production due to international competition because producers have to produce better quality goods at the minimum cost to competing with other producers in the world. Because of this competition consumers can consume better and quality goods at a minimum price. International trade is essential factor for the growth of globalization, transportation…

    • 2265 Words
    • 10 Pages
    Decent Essays
  • Decent Essays

    The technology progress have given the people the opportunity to do business internationally. Open trade allows the countries to find the cheapest things all over the world and offer the best options for the consumers. These leads to the competition among producers, and makes products much cheaper. However, there are ones who argue that globalization can lead the wealthy companies to take advantage of poorer ones, as in this case, they can exploit the cheap labor. The supporters of anti-globalization movement mention, that globalization can abolish the diversity and lead to homogenized world, where Western traditions overwhelm.…

    • 921 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Free trade is mutually beneficial because it allows for every state to use their comparative advantage to produce the goods that they can to maximum efficiency and then trade them with other countries who are also producing to the maximum efficiency their goods. This allows for the economy to reach its market equilibrium in which supply equals demand. Free trade also helps the market reach the optimal equilibrium because tariffs are taxes on products imported from other countries. When a tax is placed on a product it is felt by both the producer and the consumer. A tax also forces the consumer to pay a higher price then they would have without the tax and the producer to sell less of a product then they would have without a tax on the product.…

    • 1492 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    This is due to free trade, as countries are able to specialise in producing goods at a lower cost, which means lower prices for consumers. A positive that arises from this is due to the number of products of available, it can bring awareness to the inequality experienced by the people producing these products, for example, the rise of fair trade. Chandler states that ‘fair trade gives consumers an opportunity to exercise a moral choice in their own purchasing practices. The regular purchase and of fair trade items can act as a powerful reminder and reinforcement to the individual of their commitment to promoting economic justice’ (2006, p.256). So due to the increased variety of products, consumers benefit from…

    • 945 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    With international exchanges of goods and services, countries get to enjoy a wider variety of goods that may offer better quality. Besides that, the key reason for international trade is that by trading goods, countries can afford to specialize in producing only some items that they’re relatively better at producing. Trade means that each country does not need to produce everything, but just focuses its scarce resources on what it produces more efficiently or…

    • 1054 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The Spread Of Ideas

    • 757 Words
    • 4 Pages

    Although the specialization of economies can create instabilities, imbalances in labor, and national self sufficiency, it is said that countries can benefit from comparative advantage, regardless of their development status, they can gain from a division of labor because of trade. This connects to globalization because without trade barriers it connects countries on a global scale. Countries can produce what they create best and gain from trading it with other countries. And vice versa, they can trade with a country that is able to mass produce a particular item that country can not produce as effectively and…

    • 757 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The consumers on the other hand, were affected positively as they were able to buy these goods at a lower price than before. In this situation although corporations would like you to believe otherwise, trade is still advantageous for the U.S. because the gains of the winner still exceed that of the losers. This is rarely felt though as usually the gains are spread more thinly. Corporations being the losers in this situation may lobby to have people believe this situation is a negative one but it is not. International trade no matter if it is exporting or importing is supposed to be beneficial for everyone even if there are winners and losers.…

    • 960 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    As a matter of fact, international trade fosters competition, encourage companies to renovate, improve products, and preserve prices low and quality high in order to maintain or increase their market. This allows firms to attain a level of production that they could not conquer by selling just to the local market. Likewise, free trade broadens economic freedom by increasing opportunities, choices, and standards of living for a country. Correspondently, the above facts and in order to guarantee the productivity of free trade for the nation is necessary to enforce the current policies, and negotiate innovative ones to take advantage of…

    • 763 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Since they do have an effect of the economy, changes in how taxes are determined, welfare programs conducted, the amount of environmental protection expected, funds spent on the military, and the policies made on international trade can change the economy for a better. The citizens of a country prosper when the economy does so it is paramount for the government to do all that it can to improve…

    • 1809 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    A Country Well Governed

    • 913 Words
    • 4 Pages

    There are so many ways that a country well governed could accumulate wealth. The addition of progressive income tax and economic development programs would better help repress the inequality found throughout the economy. Managing the economy in a positive way would help improve the unemployment rate along with creating lower inflation. A country’s market is inevitable to debate when referring to how a country is governing. There are many strengths of a market that also effect the people in a country.…

    • 913 Words
    • 4 Pages
    Decent Essays