International Big Trade affects on Domestic Markets Economics Essay

INTERNATIONAL BIG TRADE AFFECTS ON DOMESTIC MARKETS
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International Big Trade Affects on Domestic Market
Introduction
International big trade extensively affects the economy. Every consumer buying an imported product or something having imported constituents becomes a part of international trade. On the other hand, domestic exports deliver numerous jobs that are also associated with international trade (De Vries, 2019). To understand the work and impact of international trade, we take one import good and one export good of the U.S as examples. This essay discusses the effects of significant international trade on the domestic market by taking sugar as the import good and cars as the export good.
International Trade Affects the Supply or Demand for Sugar
The U.S strategy toward importing sugar works as a fortification for domestic manufacturers. The year 1982 showed a sharp reduction in sugar price resulting in the trade restriction in the country to maintain the domestic price of the product above the global market. This trade restriction stated a country-specific quota that turned into a tariff-rate quota after completing eight years. This policy affectedly decreased the quantity of foreign sugar arriving in the country, and, as a result, increased the domestic price of sugar within the country to around threefold as compared with the price of the product in the global market along with decreasing the quantity of sugar consumption within the country (Rivera-Batiz & Oliva, 2003). Opening up sugar to international trade would result in a decrease in the price of the product in the country and higher consumption rate.
International Trade Affects the Supply or Demand for Cars
America exports 2.1 million cars to other countries every year. The country is one of the big automobile producers in the world. Opening up cars to international trade has raised the demand for the product meanwhile raised its price within the country. The exports benefit the industry and overall economy of the U.S (Stålhammar, 1991). Hence, the impact of big international trade on export products is beneficial to the economy with the increased demand for the product sold on a higher price.
The Competitiveness Sugar’s Market
Sugar-producing countries have legislated decree to protect their domestic industries. The U.S has maintained its sugar programs like many other sugar producers in the world who want to protect a steady supply of the product at a reasonable price for securing their domestic industries against world sugar events. Consequently, international sugar trade is directed through private business networks by government-to-government provisions (River...