It is essential for the United States to trade with other countries primarily for the growth and maintenance of a healthy economy. International trade allows the U.S. to expand its markets beyond domestic borders, increasing economic growth and job creation by selling goods and services to the 95% of the world's population living outside the U.S.
The U.S. cannot efficiently produce all goods and services it needs; trade provides access to resources and products that are unavailable or more expensive to produce domestically. This specialization and exchange enhance productivity and innovation in the U.S. economy.
Moreover, many people in other countries depend on American products, supporting U.S. industries and jobs through exports. Trade-related jobs support tens of millions of Americans, spanning various sectors from manufacturing to services.
International trade also fosters competition, which helps keep prices lower and increases consumer choice in the U.S. market, countering the idea that trade raises domestic prices.
In summary, the key reasons why it is essential for the U.S. to trade with other countries are:
- Growth and maintenance of a healthy economy through expanded markets and job creation
- Access to goods and resources not available or costly to produce domestically
- Supporting U.S. industries and jobs by exporting products relied upon globally
- Promoting competition that helps keep prices lower for consumers
The U.S. is capable of producing many goods and services but benefits greatly from international trade by focusing on what it produces most efficiently and exchanging for other needed products.
