Discussion: The effects of global trade on the U.S. economy (Essay Sample)

Discussion 7
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USA has a large population that depends on international trade to obtain and sell product and services to various parts of the world. The government together with the private sector normally participates in international trade via exporting and importing of various commodities and services. The three main categories of exports of the US include material goods, industrial supplies and consumer goods. Material goods are lauded for contributing to more than two-thirds of the total exports. These include commercial aircrafts, semiconductors, and industrial machines. Industrial supplies include chemicals, fuel oil, and petroleum products. Consumer goods include pharmaceuticals, gem diamonds, and cell phones. The imports of US include industrial machinery, capital goods, and consumer goods.
The statistics show that the US is ranked second among the largest importers and third in the exporters’ category. The US should concentrate on enhancing more exports compared to imports. The former shall facilitate the availability of enough foreign exchange that is essential for the economy. The exports shall boost the growth of local industries, which shall lead to the creation of wealth and creation of employment opportunities.
Global trading affects participants in various ways. The first one is the generation of income via tariffs and taxes levied on the products being traded. The second one is the creation of employment opportunities to facilitate production of additional products and services. Exploitation of natural and other strategic resources is facilitated by foreign trade. The loss brought about by foreign trade is the creation of imbalances of terms of trade and terms of payments where other participants seem to benefit more than other. The losses are facilitated via the presen...