How important is trade between American states?

Question

I didn't know that states traded amongst each other.

Answer 1

Depends on the state and industry. Orange growers of Florida and California heavily depend on out-of-state markets. So do potato growers of Idaho and corn growers of Iowa.

Generally, though, about 70% of what the U.S. economy consumes is services, which are usually produced near the point of consumption...

Answer 2

In most places 70 to 80 percent of the economy is local, that is people providing goods and services to each other ( teachers ,doctors, nurses, lawyers, retail stores, restaurants, government, etc) The other 20 to 30 percent consist of purchases from and sales to (trade) outside sources of good and services, mostly in other states.

Answer 3

specialization allows the united states to consume outside of their productive possibility frontier/curve. makes us more efficient