A trading nation, also called a trading hub, is a nation in which international trade constitutes a high percentage of its gross domestic product. This is the case for most developed countries, but not all. The United States is perhaps the only prosperous country that does not fully depend on trade to provide its national income with any meaningful amount of income at all.
Many of the world’s nations practice open economic policies. These policies allow for international trade to flourish, providing jobs and providing income for the citizens of the country. The United States does not practice this policy. If it were, the country would quickly become a trading nation.
China is the most important trading nation in the world. China manufactures the majority of the electronics that are sold around the world. It is also one of the largest importers of oil and natural gas. The United States has been trying for years to convince China to liberalize its foreign currency practices. However, the Chinese government has consistently rejected the idea. In fact, China’s Ministry of commerce released a report claiming that there is no need for such changes due to the fact that the country has surplus currencies and is in fact already pursuing a very pro-commerce policy.
Canada is another successful trading nation. Like the United States, Canada relies on exports to help support its economy. The Canadian economy is in fact a very important part of the global economy. Although the country does not rely on exporting large amounts of goods to the United States, many economists believe that the enormous levels of exports that Canada brings to the table provide the country with an enormous amount of income that the country receives in return.
The most successful trading nation, Australia, is not a member of the North American Free Trade Agreement (NAFTA). However, it does have significant trade agreements with many of the other North American nations. These agreements help both the Australian and the United States facilitate trade between the two countries. There is much debate within the United States over the merits of having free trade arrangements with certain nations around the world. If Australia is able to continue to maintain its free trade arrangements with these nations than it is possible that Australia will soon join the North American Free Trade Agreement.
The United States and the European Union (EU) are currently the largest trading nations in the world. However, China is currently the largest trading nation in the world. China’s recent growth spurt has made it clear that the country wants to continue to grow into a superpower. In order to achieve this goal there are two essential strategies that the Chinese government has implemented. One is to import cheap labor (especially from India) and the other is to increase exports (particularly to the EU and the United States).