Global Trading with the US Pros and Cons Free Essay Example, 5250 words

Economically speaking, every country is interested to promote its own satisfactory economic growth, relatively full employment and stability of prices of goods and services by maintaining a low level of inflation. The latter are coincidentally the similar goals of both fiscal and monetary policies. As such the two tunes of the two policies are the same, but the lyric of one is in one language like English while the other is in another language like Spanish. Governments, on the other hand, will make use of fiscal policy to manipulate government spending and taxation. Their purpose, of course, it to influence demand in the overall economy so demand cannot be too excessive to produce high inflation. This is the reason for the need for monetary policies as controls on the growth rate of money supply. Both those policies will, therefore, reflect their effectiveness in the overall economy of each country. This paper would later relate how one country benefits from international trade with other countries while each country will manage its own economy by the use of macroeconomic and microeconomic policies. In a deeper sense, policies on international trade could be part of both macroeconomic and microeconomic policies as would be explained later. We will write a custom essay sample on Global Trading with the US Pros and Cons or any topic specifically for you Only $17.96 $11.86/pageorder now As to whether the US economy has benefited from its importations in terms of attaining its macroeconomic targets, the answer should be in the affirmative. This is on the premise that the US needed to import many things in order to keep its industries running. Its dependence from oil-exporting countries to sustain its consumption and eventual export in products where it has comparative advantage can only happen with the need to import things and material it could not produce or could only be produced with loss of comparative advantage. Countries all over the world may manage their economies with the use of macroeconomic policies and microeconomic policies. The macroeconomic policies essentially include the fiscal policies and monetary policies which deal on the aggregate economy.