What are the advantages and limitations of International Trade?
International trade is essential to any economy. Of all the developed countries, the U.S. has the smallest percentage of its economy connected to international trade and even so, the U.S imported about $2.0 trillion and exported about $1.1 trillion out of a total GDP of about $13.8 trillion. For other countries, the importance of trade is much greater. It was the action of Congress in cutting off international trade that made the Great Depression “great” http://en.wikipedia.org/wiki/Smoot-Hawle… As for “limitations”, I’m not sure I understand the question. Clearly, some goods and services have to be local. As the Smoot-Hawley tariff and various similar attempts t regulating trade have shown, you can’t pick and choose when it comes to trade. If you are going to take advantage of the benefits, you have to pay the costs (such as outsourcing to countries with cheaper labor etc.) Also, no government likes to g
