Eco 372 Week 5 Individual International Trade and Finance...

| | |The U.S. Macroeconomy State. | | | | | | |†¦show more content†¦However, not everything is rose color. As a result of the economic expansion and diversity of goods and services provided by the international trade, prices are more competitive increasing the market competition among producers, which provide domestic consumers with cheaper products. One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best. When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed taxes on trading transactions adding them to the cost of importation, and have the purpose of restric ting and/or limiting the imports of goods and services into a country. These governmentShow MoreRelatedeco3721430 Words   |  6 Pagesï » ¿ Syllabus School of Business ECO/372 Version 4 Principles of Macroeconomics Copyright  © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved. 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