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Trade in US, is not good , why

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Trade in US

Trade in US is not good and most of the multinational corporations and other big brand name companies in the US have been seen cutting their domestic workforces while increasing employment abroad. This has been because of substituting cheap offshore labor for American labor as firms are taking advantage of cross-country differences in labor cost. It is therefore apparent that the gains in trade are always widely dispersed, as the losses are concentrated making labor issues to be contentious in the recent past.

Looking at the NAFTA, the government has made it hard to do business in the US thus prompting the companies to move their operations in Mexico. Materials are sent to Mexico then shipped back into the US and sold cheaply hence prompting Americans to lose their jobs and homes. NAFTA seems to hurt US because of the large trade deficit that it experiences.

Other countries such as Mexico have benefited from trade by deepening and institutionalized her drive to streamline and slacken her economy, society, and political system. Mexico and Canada have had trade, investment, and economic integration between them and the US spurred while US has experienced increase in trade deficit and other negative effects such as job lose. Some other beneficiaries of trade are China and other countries importing exporting their cheap products to America. It can therefore be concluded that some countries are better off due to cheap labor and reduced cost of production. Mexico, Canada, and China are some of the countries that have gained from the larger US market by exporting most of their products to US.

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