The International Economy

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Date Submitted: 09/20/2011 11:54 PM

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The International Economy

International trade is the exchange of goods, services and capital across the country. The international trade represents the significant share of the gross domestic product (Appleyard, Field & Cobb, 2010). Nevertheless, international trade within social, economic and political has been important for many centuries. International trade is an opportunity for workers when the exchange is good and cost effective. Free trade agreements can provide an opportunity for millions of workers in the United States. Free Trade increases US sales and profits. For example, the removal of costly and delaying trade barriers, such as tariffs, quotas and conditions, inherently leads to easier and swifter trade of consumer goods (White, 2010). Free trade agreements help workers and give them an opportunity to find work and to make a decent living. Free trade agreement also help creates job for long term employment. International trade provides a large employment opportunity for workers throughout the nation. International transactions have been becoming increasingly important in recent years as countries seek to obtain the many benefits that accompany increased exchanged of good, services, and factors (Appleyard, Field & Cobb, 2010).

International trade is a threat for workers when there isn’t enough work to provide funds to take care the families. Economic crisis in the United States is a threat to workers. There has been an increasing depression in the United States due to lack of jobs in countries like China and India. With the lack of jobs for workers, international trade has become a threat to workers in the United States. International trade is also a threat when the United States bring in migrate workers such as Mexicans, Puerticans and Chinese. In addition to the above factors cheap labor, materials and outsourcing work overseas provides a threat for workers.

Some of the major challenges confronting the international trading system are...