Today\'s transportation infrastructure makes international trade more efficient
ID: 1158423 • Letter: T
Question
Today's transportation infrastructure makes international trade more efficient than intra-U.S. trade was 100 years ago. What this means is that it is easier today for a shirt made in China to get to California than it was for a shirt made in Georgia to make it to Missouri in 1900. The U.S. Constitution has always banned states from regulating trade between states. This amounted to a within United States free-trade agreement. Can we use the experience of the United States between 1900 and 2000 to predict what would happen in world trade if there was free trade across the globe??
Explanation / Answer
Yes we can utilize it to generalize about which country will export and import which commodities based on their comparative advantage.