Question

What are American merchandise exports so competitive in the world? Why are American service exports-ranging from movies to university degrees-even more competitive? More generally, how does international trade contribute to a nation's economic growth and prosperity?

Answer 1

Introduction

America has emerged as one of the key dominant factors for success of the world as it is today. It was the pioneer of developing the internet technology which enabled people to stay connected with each other and led to the banking revolution and their relevant changes as we all know today.

It has emerged as the key hub of all technological innovation which occurs across the globe and helps in growth of the economy as a whole. The reason why it has emerged as this super power which most other countries look to achieve is how rapidly it has transformed itself to be the leader of technological innovation with most number of patents which are filed in a countries political boundaries.

Further the nature of its exports is such that it brings in huge capital inflows thus allowing the country to grow and the value of the currency to be recognized worldwide by all sections of the society.

Case Specifics:-

What are American merchandise exports so competitive in the world? Why are American service exports-ranging from movies to university degrees-even more competitive?

The reason why American merchandise is extremely competitive in the world is because of the superior technology that it uses when compared to other counterparts. The main reasons for the development of America as a superpower is the same. The exports are valued heavily across the global markets and the brands are deeply trusted thus enabling better overall sales and making them heavily competitive.

The superior technology which is used to build these products makes them of higher quality as compared to any of the competitive companies and as a result, the overall trade which happens with companies of the country are relatively much higher in volume.

Further, the skills that are used by people into developing such products transforms the educational sector and the entertainment as a sector has also rapidly evolved with higher capital availability due to large exports of the country. The education in the country is so good that it is widely recognized as the pioneers of technological and university level education thus making it more competitive.

More generally, how does international trade contribute to a nation's economic growth and prosperity?

The fact, that the United States engages itself in higher international trade, when compared to most other counterparts helps in easier transition of the economy. The country is so technologically advanced that its products are always in high demand compared to other counterparts. The experience of most services also tend to be relatively higher thus enabling the country to have a better road map for itself. Higher reserves means better spending on increasing infrastructure and focusing on areas such as healthcare, nutrition etc. which has had large impact on the society at large.

Further, due to the high demand of the goods produced by American companies, the economic growth never stagnates since even when due to cyclical fluctuations if the demand within the country falls it is shielded by foreign trade which promotes good growth and overall prosperity for the nation.

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