Business Studies

Respond to the following in a minimum of 175 words:
• Discuss non-monetary benefits open trade has contributed to the world since the end of WWII. Provide at least 2 examples. Why do you think these are important?
• How have changes to US trade and tariff policies affected US trade with other nations? Consider recent (less than 2 years old) credible news sources to support your response.

ANSWER

Open trade also known as free trade is a trade which is not restricted by quotas, tariffs and duties. After WWII, trade really evolved and brought both monetary and non-monetary benefits to the world. Some of the non-monetary benefits include; promotes fairness in trading activities where the trade comes with rules and when everyone follows the rules, prevents issues of cronyism and the possibility of some participating nations to be favored by trade benefits. Open trade promotes competition where workers are expected to adjust to the shifting demands of the worldwide marketplace which are crucial to remain competitive because competition fuels growth. Lastly open trade promotes efficiency and innovation improvement where the trade works with other processes with an aim to move workers to more productive uses making efficient industries to thrive rapidly which leads to more dynamic economy that creates more job opportunities.

Over the recent years trade has evolved thus transforming the global economy. These changes have affected the US trade with other nations in several ways. One of the impact is competition. US is fighting competition from outside forcing her to source materials from other countries. This has turned companies to global markets as they actively seek for production locations and new partners. Secondly, the change in trade has led to efficiency and technology. As US trades with other countries, technology innovation has enabled a more convenient trade environment. Technology helps reduce cost and time by empowering efficiency in global trade. Thirdly, the changes have brought about interconnectedness. More investors are now able to access new opportunities at a greater distance than before this has been brought about by increase in communication and awareness of business opportunities in the far corners of the globe. US has greatly benefited from the change in trade that has great positive effects