Effect of Trade and Growth

Effect of trade and growth

Jeremy Evans

TLMT311 D001 Fall 15

American Public University

Professor Lawrence Reeves

January 13, 2016

The United States itself is a model example of the effect of trade and growth. It is consecutively one of the most exposed economies and one of the cleanest environments in the world. The well-organized progress of freight is significant to the U.S. economy. Freight transportation requires an economical operating system of trucks and highways, and ships, trains and rails ports, and waterways.

Globalized Trade

For years, the improved dependability and low cost of freight transportation in the United States have kept supply-chain costs low. It's done this by supporting new business approaches, such as distributing on-demand manufacturing and providing inventory models that boost economic productivity.

North American and European systems are presently not that different, but the outlook of a future shows a dramatic increase in growth. Apprehensions of the European countries decrease on the fact of how congested they are. There is no real room for growth in these small areas. America's total transportation network has changed because we don't have limits on the land. America has moved to a slimmer much more nimble logistics plan. Primarily this assisted Europe by allowing for an extreme decline in needed warehouse space that American had. These benefits are short lived since leaner meant faster moving goods throughout the world (Leinbach, 2007).

Global Policy

Europe experienced a lack of large highway structures needed to support their growing transportation needs. Without the road and rail network needed to travel and the warehouses to store goods in, Europe’s economic community became anxious. The amplified use of trucks would cause more time for travel that also compressed the location of services. The annoyance came while trying to offset the increases the government-imposed tolls on the highways,...