Question

Unit 7 Assesment - U.S Trade goods

Instructions

Analyze: United States Goods Trading

Evaluation Title: U.S. Trade Goods

In a Microsoft Word document, please complete the following.

Countries and economies across the globe have the ability to produce products and goods. Some products are unique to a specific economic market and thus they are able to trade those goods with other markets that want or need that product, resource, or good. Though countries will also trade goods for products that the country could easily produce themselves. With this understanding please address the following questions in a written essay.

Why does the U.S. trade goods that they can produce themselves with other countries?

Wouldn’t the U.S. be better off producing the goods themselves?

In your opinion, has the U.S. outsourced too much?

How do you know this to be true?

For this assignment please create your response in a written essay. Make sure to use well-developed paragraphs to fully explore and explain your opinions and ideas.

Your essay should include a minimum of 250 words.

Please use APA formatting in your essay – if applicable.

Answer 1

1. Why does the U.S. trade goods that they can produce themselves with other countries?

When countries import the goods that they can produce themselves, it is mainly because of a few reasons. The U.S. trade goods that they can produce themselves with other countries mainly because the resources required to produce the good can be of better quality in the exporter country. This gives them superiority over the importer country and produces the good of better quality. Another reason for such a phenomenon can be the preference or the demand for imported goods by domestic consumers.

2. Wouldn’t the U.S. be better off producing the goods themselves?

The U.S. wouldn't be better off producing the goods themselves probably because the cost of importing a particular product is cheaper than the cost of producing the goods domestically. This means that if the U.S tries to produce the goods, the cost of production per unit will be higher than the cost of an import per unit.

3. In your opinion, has the U.S. outsourced too much?

In my opinion, the United States has outsourced, but not "too much" with a couple of valid reasons. One of the reasons is cheap labor. The countries where the production processes are outsourced provide cheap labor and thus decrease the overall cost of production per unit. Also, it is possible that the United States does not have the required labor skills to complete the good in an efficient way. Besides these, there is a lot of scope for innovation in other countries.

4. How do you know this to be true?

With an economy worth trillions, it is necessary to outsource as it greatly helps sin simplifying and organizing the business processes. Also, outsourcing helps in maintaining the global market and maintain the competition. Domestically, a lower cost per unit will also help in bringing down the market price of the goods, benefiting the local consumers.