A trading nation is an economically powerful nation that allows for international trade to be the backbone of its national economy. The trading nations have the largest shares of the world’s exportable goods and the second largest manufacturing base of the world. Trading nations provide consumers with a wide variety of goods at low prices. A nation that has little to no internal barriers to trade will quickly become a world leader in exports.
The first step in becoming a trading nation is monetary integration. Many trading nations have a currency that they trade with, usually the US dollar. This currency acts as their own unit of account and influences their domestic and foreign policy. Monetary integration brings both sides of a trading nation closer together economically. Exports lead to job creation which, in turn, leads to economic integration.
China is the largest trading nation in the world and accounts for almost half of all exports and imports. China’s recent growth has been nothing short of spectacular and the Chinese have been playing catch-up to the U.S. for years. It is now time for China to become a major player in the global economy. As China becomes a major exporter of consumer goods the jobs available in the U.S. will take more of an interest in how China can improve its ability to export jobs. In this way, China can increase its own economy while creating more jobs for the United States.
Canada is another North American trading nation that allows for international trade. Since it is a trading nation it must rely on exporting its goods to the United States to make its way through the international market. However, since Canada is a very important trading partner with the U.S. for both exports and imports this relationship is crucial to the success of Canada as an export provider. By developing a better relationship with the Americans, Canada can allow for more exports and imports that will lead to more jobs.
In addition to expanding its trade relationships with other nations through international trade, another way in which Canada is leading the North American Free Trade Association is by encouraging its citizens to start taking advantage of the opportunities that free trade offers. By opening its doors to more manufacturing, services, and products Canadian companies can take advantage of the increased international trade flows that occur when nations develop closer economic bonds. By doing this, Canada is able to tap into the huge market of international trade and become a major exporter of products and services to the world.
Although a strong trading nation like Canada has some advantages over its economic peer group the reality is that it still faces many barriers to trade. For example, maintaining a strict customs system that controls the movement of goods is an extremely difficult task. Additionally, the language barrier is a major hindrance for most immigrants and expatriates trying to make it in to this prosperous country. Luckily, a strong commitment to trading and free trade is a great benefit for Canada. With a little bit of time and patience Canada will see itself emerge as a tradable nation.