International Trade Will Improve The United Economy

Several theories exist that take different approaches on what imports and exports would produce the best outcome for a given country. Countries have to specialize on certain goods in order to have a strong impact in the global trade. Many have argued that imports can have a negative impact on domestic products. Even though this is true, I believe that promoting free trade will improve the U.S. economy in the long run and that the benefits outweigh the costs. Firstly, an open market is when there are no restrictions on international trade. In other words, there are no tariffs or quotas interfering with the exported products. An advantage to eliminating restrictions on trade are that it supports innovation. If there is more competition for products on the market, then companies will invest in ways to produce a product more efficiently. This leads to new technological advancements which will help the country expand to new limits on the international market. Likewise, free trade will lead to higher quality products at low prices. This happens as a result of competition from international companies producing the same product. Consumers clearly benefit from these advantages while infant companies are at a disadvantage having to compete with older companies. A few disadvantages to promoting deregulated trade are that new domestic companies may have a difficult time competing with international companies. Many domestic companies may run out of business if they areShow MoreRelatedThe Global Economy and International Trade1357 Words   |  6 Pagesï » ¿The Global Economy and International Trade What Is International Trade International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). 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