Us Vs China Essay

In the nutshell, the international trade is the exchange of goods and services between the countries. This kind of trade is the pillar of our modern world economy, as it allows nation to profit from the world market rather than trade only within a country’s border. International trade is a topic of rising importance for the United States; more and more, our population is consuming goods produced in foreign nations, and manufacturing goods to sell in the world markets. The trade relations between the United States and China are complex, however, there is no doubt that this partnership is fundamentally beneficial for the United States in both export and import. To better understand the benefits of trade between the US and China, it is important to understand one of the

First, we imported $483 billion of goods in 2015; the majority of these imports was the consumer gods as: consumer electronics, clothing, household appliances, and etc. These imported consumer products helped to slow down the increase of prices and directly helped to millions of law wage Americans. Furthermore, another part of imported products to the United States are inputs and components used by American manufacturing companies. Lower input prices will increase supply of the goods, and make United States manufacturing industry more competitive in international markets. Lately, in the mass media, we can hear voices of the politicians who support government policies that restrict international trade in order to protect local businesses and industries, however, these policies showed that trade policies do not affect the trade balance. For example, an import quota does not affect the trade balance, it reduces both import and export, but net exports are unchanged. Moreover, free trade allows economies to specialize in what they do the best, making citizens of all countries better-off; trade restrictions reduce overall economic