Why is the panama canal important to world trade?
The panama canal is important to world trade, because the creation of it allowed a quicker and easier passage from the pacific ocean to the atlantic ocean. Instead of forcing ships to go all the way south of the south american continent to get to the pacific, they could simply go through the canal and save valuable time and money.
Before the panama Canal was built, ships had to go all the way around the continent. The Panama Canal was a shortcut that meant goods got to the market in half the time, and at half the expense. The fact that it was so much faster also meant a wider range of goods could be shipped because they wouldn’t go bad in transit.
The Panama Canal is located in the the country of Panama which is in Central America. It is used for ships to travel through America and save time. Before the canal, ships had to travel around the tip of South America, wasting time and money. With this canal, shipping costs are lowered as it is easier to ship goods around the world.
