America is the world's largest national economy and leading global trader. The process of opening world markets and expanding trade, initiated in the United States in and consistently pursued since the end of the Second World War, has played an important role in the development of American prosperity. In terms of the U.
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Such gains arise in a number of ways. Expanding the production of America's most competitive industries and products, through exports, raises U.
Shifting production to the most competitive areas of our economy helps raise the productivity of the average American worker and through that the income they earn. With the ability to serve a global market, investment is encouraged in our expanding export sectors and the rising scale of output helps lower average production costs.
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Moreover, imports increase consumer choice, and help keep prices low raising the purchasing power for consumers. Imports also provide high quality inputs for American businesses helping companies and their U. The potential economic gains from trade for America are far from exhausted. Trade remains an engine of growth for America.
The negotiation of further reductions in global barriers and effective enforcement of existing agreements are the tools to reap those additional benefits. As policy actions taken in the United States and countries around the globe continue to restore economic and job growth, an important part of the recovery will be the restoration of trade expansion. Over the past 5 and one quarter years of recovery from the 2nd quarter of to the 3rd quarter of , U.
Citations Publications citing this paper. Transportation costs and the spatial organization of economic activity Stephen J.
Redding , Matthew A. References Publications referenced by this paper. New estimates of census coverage in the United States, Jonathan D. Costinot , Arnaud , Dave Donaldson , Ivana.