Question
I need to reply my classmates discussion post. Trading between nations could become extremely disorderly for two countries if they suddenly quit doing so. That
I need to reply my classmates discussion post.
Trading between nations could become extremely disorderly for two countries if they suddenly quit doing so. That would result in a shortage of goods, which are crucial for some governments or citizens. Moreover, it would result in higher domestic product prices, lowering consumer purchasing power. Less consumer spending would result in slower economic growth, affecting an economy's standing abroad. It may also transform a wealthy nation into a poor one. However, the latter will suffer more because of the lack of global trade.
Many goods would become unavailable if commerce between the USA and other nations were broken off. Due to the importation of these goods from Chile and Brazil, it would only be possible to obtain tea, coffee, fresh fruits and vegetables, various spices, dried fruits, etc., if commerce with those countries were to be halted. The rapid reduction in commerce with both nations would restrict the supply of many electrical brand items, forcing Americans to live without them. Most luxury goods and services are imported into the United States rather than produced there. Thus if the country suspends trade with all other nations, its citizens won't have access to these products.
Since the export of these machines brings in several billion dollars for the US each year, the US is the top exporter of electric machinery. China, on the other hand, is the country that supplies the most clothing and textiles to the US. Hence, if commerce with China is halted, the US will have to do without some fabrics and silks.
The following are possible effects of the trade cutoff on enterprises and the economy:
Increased Domestic Production
Lack of Resources
Price Increase
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