Understanding the Concept of National Trade Flows

If you’re interested in discovering some of the patterns in national trade flows, it’s well worth continuing reading to discover a few simple facts about the country’s trade flows from Umberto de Pretto!

What you need to know about national trade flows:

1. Each state specializes in producing specific products which are then transported to each corner of the country

As the USA is such a big country, most states tend to specialize in creating a short list of specific products which the country needs. As an example, California is responsible for producing much of the country’s oranges and grapes, while Hawaii is responsible for producing the vast majority of the country’s pineapple supply.

As an alternate example, Texas is responsible for producing most of the country’s domestic supply of oil. While the rest of the oil which the country consumes is shipped in from foreign countries such as Iraq, Iran, Saudi Arabia and Canada.

Why does each state specialize in creating a short list of products? The USA is a large country which means that each state boasts a different climate and terrain as well as different natural assets. Which make it easier for some states to create certain products than others. As an example, oranges are primarily grown in Florida and California as both states offer excellent conditions to grow oranges. So it makes perfect sense for both states to supply the majority of the countries orange supply.

Another reason why each state focuses on creating different products is that it’s far more efficient for businesses in each state to focus on producing a limited range of products. Which can then be transported and sold across the country.

2. The states which are able to produce rare or highly sought after products and services tend to be more affluent

States and cities which fail to produce rare or in-demand products, often end up experiencing an increase in poverty. As an example, when Detroit used to be responsible for manufacturing cars, Detroit used to be a wealthy city to live in. However, when its car factories were forced to shut down, Detroit’s economy struggled as a result!

3. The USA also exports billions of dollars of products to foreign countries

Not only does the USA produce a large percentage of products which are sold in the USA but each state also produces enough products to be exported to foreign countries. Which is responsible for bringing billions of dollars into the country each year and contributes a significant amount of money to the nation’s GDP.

What are some of the examples of high-quality products which are manufactured in the USA and are exported offshore each year? Popular examples of some of the products which are manufactured in the USA and exported to far-flung countries include aircraft, pharmaceutical products, vehicles, machinery, military products, plastic products, electrical equipment, and electronics.

In conclusion, hopefully after reading the nation’s trade flows you have a far better understanding of why most states tend to focus on creating a short list of products and why exporting products is still important to the country’s economy.

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