By: Maya

 Vocabulary

 Interdependent- they depend on one another for natural resources, finished products, and services.

International trade-a trade among nations, allows people in the United States and in other countries to buy goods that their own countries do not make or grow.

Free trade agreement- a treaty in which countries agree not to charge tariffs, or taxes on goods they buy from and sell to each other.

Global economy- the world market in which companies from different countries buy and sell goods and services.

Each day, people in different regions of the United States exchange natural resources, finished products, and services. That is because no one state or region has all the natural resources that people and businesses there may need or want. And no one state or region can produce all the goods and services that people may need or want. North Carolina, For example, grows too little cotton to supply all of its textile mills, so mill owners there buy cotton from other states. In turn, farmers in those states may buy cotton clothing made by workers in North Carolina. In this way people in different states are interdependent.

The United States and other countries are also interdependent. Modern transportation and communication systems have made it easier for people in one country to trade with people in other countries. Goods from the United States are exported to places all over the world. At the same time, the United States imports many goods from other countries. The United States most important international trading partners are Canada, China, Britain, Germany, Japan, and Mexico. The United States imports oil from members of the Organization of Petroleum Exporting Countries, or OPEC.

To increase international trade, many countries including the United States, have signed the free trade agreements. Such an agreement gives industries in each of the trading nations the chance to compete better. In 1994, Mexico, Canada, and the United States put the North American Free trade Agreement, or NAFTA, into effect. One of NAFTA’S goals has been to assist the movement of goods and services across national borders. As a result, the number of goods and services available to people in all three nations has increased. International trade adds much to the economy of the United States. The United States also interacts with other countries on other ways. Many companies in the United States have offices and factories in other countries also have businesses in the United States. Almost 5 million people in the United States work in businesses owned by people in other countries. This means that the nations of the world are now part of a global econmy.

EMAIL US!