Why Consumers Need Trade

1236 Words 5 Pages
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