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The importance of international trade in the United States.

The importance of international trade in the United States.

Table of content

We know that activities related to international trade are among the most common when forming a company in the United States, since this country offers facilities and thousands of growth opportunities.

Many businesses around the world have taken advantage of the different Free Trade Agreements to benefit in their foreign trade management, and preferential programs with the United States.

However, the US could be fertile ground for your company too. Regardless of which products are exported, buyers will naturally be attracted to imports that are favorably priced compared to alternatives of similar quality. Additionally, there is the fact of being able to buy products directly from a US supplier to sell it in another country at a better price. Finally, and what we consider to be the main advantage, is the receipt of money from sales in the American business account, which facilitates all types of commercial management.

The United States, despite being known as a self-sufficient country, continues to depend on imports for the development of its economy. Many import companies offer lower prices and more options for American families as they try to stretch their budgets. Companies also depend on imports to obtain raw materials and inputs at competitive prices. Imports provide the American consumer with access to otherwise unavailable products, such as fresh fruit in the winter, and additionally, access to imports increases the purchasing power of the average American household by approximately $18,000 a year. Firms' imports of intermediate goods, raw materials, and capital goods account for more than 60% of all U.S. goods imports, lowering costs for manufacturers and other businesses and helping them hone their competitive advantage .

On the export side, the United States is by far the world's largest services exporter, and America's globally competitive service industries, including audiovisual, banking, energy services, express delivery, information technology, insurance and telecommunications, benefit greatly from opportunities abroad. Without leaving aside the importance of the FTAs for exports, since it is allowing the entry of products with lower tariffs to almost 20 countries around the world.

Some of the countries with which the United States has a Free Trade Agreement are:

  • Mexico and Canada (NAFTA, North American Free Trade Agreement)
  • Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and the Dominican Republic (Free Trade Agreement between the United States, Central America and the Dominican Republic – CAFTA - DR for its acronym in English-)
  • Colombia, Chile, Panama and Peru (individual FTAs)

 In the end, no country can turn its back on international trade. It is an unavoidable part of the world in the 21st century. Investing in the creation of a company in the United States to obtain thousands of benefits in international business transactions is now an option, and every day more people are choosing it to achieve business success.

Jhoan Landaez
CFO Prodezk

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