Should the U.S. be involved in International Trade at all? Why cannot we produce everything by ourselves?

Answer 1

not necessarily that we can't. The argument is what can we produce most efficiently. If everyone produces what they can do most effieciently everyone is better off.

For example If the US can produce steel for $10 a ton but Canada can do it for $8 a ton wouldn't we be better off buying it at $8 then $10 and using the money for the steel mill to produce something else.

There are certainly arguments against doing this but this is the economist logic.

Answer 2

First, there are minerals that the U.S. does not have or has in insufficient quantities; sometimes, the minerals are there, but mining them domestically is more expensive than mining them internationally. Second, there are agricultural commodities that simply do not grow in the U.S. (bananas and coffee are prime examples).

But more importantly, why should the U.S. produce everything domestically? As Adam Smith put it in The Wealth Of Nations,

It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy...What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.

Answer 3

The simple answer is that the U.S. could produce most things we need ourselves but it would cost us a heck of a lot more to buy American than it would to buy products from other countries. They can do it better and less expensively than we can. And this is where a lot of Americans are short-sighted -- it's not the corporate execs who are to blame; it's your average Joe American who thinks that certain jobs are "beneath" him and also expects to be paid a king's ransom for labor that requires little or no skills/training. We're heading for another Great Depression, and in one way this country NEEDS a depression as a reminder that we should be thankful for what we have and not so greedy.

Answer 4

Well, at least you grasp the usually ignored point that the most important reason we engage in International trade is to import stuff ... not to export stuff.

To answer: NO, we cannot produce everything we want ourselves. Ever heard of coffee? You can grow a little bit in Hawaii, but not nearly enough to serve all the Americans who want coffee. There are many more examples. More often though, we're simply better off economically for importing certain things rather than making them.

About 200 years ago, one of the great British masters of Economic science, David Ricardo, explained mathematically and logically how countries that are free to trade will do so to a degree that is mutually beneficial and takes advantage of their strengths.

For example, a lot of toys are made in China. The US *could* apply all its sophistication and technology to make our own toys more productively than the Chinese can make them. In fact, we could probably make EVERYTHING more productively than the Chinese can. They have cheap labor, but we could actually outdo that advantage with our capital and engineering, while avoiding the significant costs of transporting goods across the Pacific Ocean.

... But that would be dumb, because Americans make more money by doing other things like writing software, making custom Dell computers, growing soybeans, etc. Plus the vast majority of labor is needed simply for services -- Americans doing things in America for other Americans; in the big picture, importing goods frees up labor to engage in services that cannot be imported. If we specialize and trade, then we'll have plenty of toys and domestic services, and the Chinese will have plenty of soybeans and Windows XP, and we're both better off for it.

Answer 5

Well, why can't you produce everything yourself? There's no need to "trade" with the grocer. You can produce all of the food yourself. There's no reason to "trade" with the barber. You can make hair cutting tools and cut your hair yourself.

But, you probably engage in trade with your grocer and barber because you find that you can get it done there much more efficiently than doing it yourself. Fact is, you likely run a huge trade deficit with your grocer as I'm sure he doesn't buy as much stuff from you as you buy from him. But, no worries.

Same with International trade. It's a non-issue. Go worry about something that actually matters like saving enough for your retirement.

Answer 6

Since America has access to every natural resource on the planet, and God's blessing as his chosen people, we can just tell the rest of the world to cram it. America doesn't depend on the world for ANYTHING! That's why we are the super power. It's like saying Superman needs help the same way Batman does. America invented everything worthwhile and always has to go out and save people, usually French ones, from some menace or another. That's why I painted my trailer red, white and blue. That's why my Ford truck is the only one I will ever drive and Toby Kieth is the only musician I will ever listen to. The only real sport is football and the only real team is the Patriots. I hope I helped you realize why America is the best, but now I have to go get some stuff from Walmart. AMERICA!

Answer 7

Yes, the US should be involved in International trade..
And yes, we can produce everything ourselves..

Answer 8

Is it practically possible to produce everything? And that too at the same price that you pay your good for? There are a lot of things that are available at a lowere rate and without much fuss then why not go for it rather than making it dearer for the consumers

Answer 9

Many many problems with this, if we were to produce all our own oil/fuel, the activists would never get a nights sleep. and we also wouldn't be able to support all the many Chinese sweat shops. in addition that prices in just about everything would go up causing an economic catastrophe. due to having to pay minimum wages to strong workers rather than 25 cents to the unfortunate slant eye.

Answer 10

precisely. that's often spoke of as projection. persons are like our mirrors. What repels us from others are regularly issues that aggravate us approximately ourselves that are uncomfortable and consequently disowned and projected directly to a different. It occurs any wrong way around too. We comprehend issues in human beings that are features that are to a pair quantity in ourselves. Relationships are substantial to help us doubtlessly advance, see and are available greater wakeful approximately ourselves, others and the international.