Question

• How has international trade changed over time?
• What are some of the trade agreements the US has with other countries? Do you feel they are beneficial to the countries?

Answer 1

Because of developments in logistics, infrastructure and geo-political relationships, companies are now able to maximize and extend their capacity in ways that have not been possible in the past. Currently, it is quite normal for international businesses to have their headquarters in one region, their production in another, and then sell their products in many other nations around the world. Apple Inc., for example, has its headquarters in Cupertino, California, but it does a large amount of its production in China and sells products from Australia to Argentina and Germany in countries all over the world.

The United States, for example, is a massive global market, but many businesses choose not to base their production there because it has higher minimum wages and more stringent labor regulations than many other countries.

Industries can now take advantage of what different countries have to say to increase their profit margin because of all the advances in international business.

Regional trade deals are in a specific region between countries. The most strong are those representing a few countries spanning a large and neighboring geographic area. These include the Free Trade Agreement of the North Atlantic and the European Union. Typically because the countries involved share similar values in tradition, society, and economy. When the countries are very different, regional trade arrangements are hard to create and implement. An example of this is the Southeast Asian Nations Community, whose members share a common denominator of the Pacific Ocean.

The TPP would have succeeded NAFTA as the biggest deal in the country. President Trump removed from the deal the United States in 2017. It would have been the nations sharing the Atlantic between the United States and 11 other countries. These are Britain, Canada, Chile, Brunei Darussalam, China, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Some countries ' members signed the agreement in 2016. It was being adopted by the assemblies of the nations. The aim is to boost trade and investment. This fosters creativity, economic growth, and education. This helps to create and maintain employment.