Answer:
From a historical perspective, there have been two waves of globalization. The first wave started in the 19th century, and came to an end with the beginning of the First World War. The second wave started after the Second World War, and is still continuing. In 2019, U.S. exports were $2.5 trillion, which contributed 11.7% to gross domestic product.8 Most of the manufactured goods the U.S. economy produces is for internal consumption and doesn't get exported. Services also make up a large portion of the economy, and those are more difficult to export. GDP components are in four major categories: personal consumption, business investment, government spending, and net exports.9
Despite everything it produces, the U.S. imports more than it exports. In 2019, imports were $3.1 trillion.10 Most of this was capital goods (computers) and consumer goods (cell phones). Domestic shale oil production has also reduced imports of oil and petroleum products. Even though Americans benefit from imports, they are subtracted from GDP. 11
Trade Deficit
The United States has a trade deficit. In 2019, international trade subtracted $616 billion from GDP.8 Data on America’s import and export components show that goods and services purchased by the nation outweigh those which it sells on the global marketplace.12
The deficit has lowered because of the trade war initiated by President Donald Trump in March 2018.13 Trump's protectionist measures included a 25% tariff on steel imports and a 10% tariff on aluminum.14 China, the European Union, Mexico, and Canada announced retaliatory tariffs, hurting U.S. exports, and a deal was reached to remove the tariffs in May 2019.15 16 The tariffs depressed the stock market. Analysts worried that Trump started a trade war that would hurt international trade.17
U.S. Trade Agreements
Countries that want to increase international trade aim to negotiate free trade agreements. The North American Free Trade Agreement (NAFTA) is between the United States, Canada, and Mexico, and is the world's largest free trade area.18 It eliminates all tariffs among the three countries, tripling trade to $1.2 trillion.19 When you consider its history and purpose, NAFTA's advantages far outweigh its disadvantages.
On November 30, 2018, U.S., Mexican, and Canadian leaders signed the United States-Mexico-Canada Agreement, which changed NAFTA in six areas.20
The Trans-Pacific Partnership (TPP) was negotiated between the United States and 11 other countries—all of which border the Pacific—and it aimed to enhanced trade and investment among the TPP partner countries.21 The countries involved were Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The TPP included new trade requirements addressing the compatibility of regulations and support of small businesses.
The Transatlantic Trade and Investment Partnership would have linked the United States and the EU, the world's largest economies. It would have controlled more than one-third of the world's total economic The biggest obstacle is agribusiness in the countries, as both trading partners have large subsidies for their food industries.
Explanation:
