Question

Explain why it is important to understand America’s Policies toward international trade even though you have no intention to be involved in International business.

Answer 1

It is important to understand America's policy toward international trade even when we no intention to be involved in the international trade is because we all are consumers. Even if we don't involve yourself in the international business we consume a lot of goods produced and exported in and out of America.

For example. we in America consume a lot of products produced in China it ranges from iPhones to simple household goods and touches almost every aspect of our lives. If a restriction is imposed on goods which are imported from China all these products which we are using will see a price rise and affect our ability to consume. This will have a wide range of effect on the American economy like low demand, less consumer satisfaction, costly products and inefficient production in America. If people are spending a higher amount of money on certain goods they will demand less of other goods affecting overall demand in the economy.

So, if not as a businessman we need to understand America's international trade policy as a consumer and someone who will get affected by a fluctuation in the overall economy.