In business, trade is a big word. Not in the sense of how you spell it, but rather how we use it, as there are many compartments to trading with different countries. From exports, to labor, to production and prices, trade isn’t just the exchanging of goods. Lets break it down and use the example of clothing.
When it comes to business, there is more than one important facet to creating a successful and productive company. Most importantly, is the part culture plays. Think about it. Culture, defined, is an integrated system of learned behavior patterns that are characteristic of the members of any given society, and culture is thus shared through various groups of shared interests. Essentially, it’s the things people share together; language, social cues, behaviors, religions, and even various attitudes and manners that are accepted. In order to produce a successful business globally, you must learn these special aspects of culture, otherwise, you risk not only embarrassing yourself, but loosing an important deal.
In 2016, America shipped over $1.45 trillion dollars worth of goods around the world, solidifying the country as one of the top exporters. But why is exporting so important, not just for the economy, but overall, on a global scale?
Usually, when you think of exporting you think of sending physical goods to other countries; things like automobiles, oil, or even clothing. But what perhaps is the most important export of all is the exporting of ideas and culture! These are the primary ways in which new ideas filter in and out of various societies, so that new innovations and inventions can be created. It is also a way for people to experience other cultures, like when we import in Indian spices like turmeric, saffron, and cumin, we are not only spicing up our foods to make them even more delicious, but we are taking part in a new culture as well.
The exporting of cultures can also be through things like television shows. Take the classic TV show, Friends. In its hay-day, it produced millions of viewers across the world, from the UK, to India, to even China. To this day, even after being off air for almost 12 years, the show continues to be highly popular, from the outfits on the show making a comeback as fashion in different countries, to the emulating of the typical “American lifestyle” portrayed by the show, by other cultures. Television shows like this allow for people in other countries to get a glimpse into the life of a person unlike them, which is the very point of globalization.
President Trump signed an executive order that will withdraw the United States from the Trans-Pacific Partnership (TPP). The TPP is the largest planned regional trade accord in history, and was designed for the United States and 11 other nations in Asia and the Pacific to build a free trade zone. Its purpose was to lower tariffs, resolve trade disputes, and make patents safe, all while enhancing U.S. power in Asia.
The new administration has fulfilled Trump’s campaign promise, by changing America’s trade ties with other countries, and abandoning the TPP brokered by his predecessor. The withdrawal from multinational trade agreements stems from his belief that they “erode American jobs and opportunities”, and has had large geopolitical implications in Asia, and throughout the world.
The Trump Administration will seek modest changes to the North American Free Trade Agreement renegotiation process. According to a draft of a letter sent to Congress last week, the Administration is seeking a more conventional approach to trade negotiation.
NAFTA, which was established in 1994 between Canada, the U.S., and Mexico, aims to reduce trading costs, increase multilateral investment, while helping North America become more competitive.However, during the 2016 presidential campaign, President Trump made the debate over free trade one of the central topics of his campaign.