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? Current Macroeconomic Situation in the US U.S. Securities and Exchange Commission ?

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Global trade is the doing of business across the globe. It can be between countries or individuals. With the developments in technology, it has become easier for such business to be carried out given the easiness of communication and handling of the necessary documents (Stedman, 1979). When countries participate in this trade, they benefit from it. This is the discussion that the paper tries to analyze and expound.†

When countries engage in this trade, a country is able to acquire new knowledge on the operations that lead to manufacture of certain goods. Tours and seminars can be organized where a country that does not have the knowledge of such production and thereby gets to learn and be in a position to exploit its own resources and use it for production. Therefore global trade aids in the sharing of ideas and knowledge from one region or country to the other.

A country is able to get goods, which it does not produce. This is realistic where a country lacks the raw materials or the capacity to produce such goods. By being involved in the global trade, such goods are easily obtained from the global market. The effect is assistance to those countries that lack such products and thereby enhancing their welfare. This promotes understanding between nations. Based on their relations on trade, peace can prevail in case of any disputes that may arise in the future, hence the relevance of global trade.

Global trade improves the economies of the countries involved. For example, when America, Mexico, and Canada signed the NAFTA Act that served to reduce the restrictions to trade amongst the countries, their GDPs greatly improved. This is because global trade opens up more opportunities for exchange of goods and services. New markets are created and hence more revenue thus improving the economic performances of the countries. New markets also imply creation of employment opportunities because there is need to have more goods produced and exchanged in the market. It is therefore no doubt that by engaging in global trade, countries greatly enhance their welfare.

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