International Trade
The connection between trade and world output is similar to that of water running in and draining out of a sink. If the water is running slow and smoothly the sink will keep a steady level. But if the water is running fast and anxiously then the sink can not empty fast enough to keep up and fills very quickly. The faster the world produces products to trade the more trading is done. The slower it produces the less there is to trade.
Trade slows when people are doubtful about their futures and the country is unsure of what’s to come, they buy fewer products than ever before. When a country is in recession the value of its legal tender is weak to that of other countries. This makes the prices of imports go up while the price of home goods seem less.
The US is on a verge of a monetary recession and our currency is loosing value. This will make imports more expensive for us while driving down the prices of our products we trade.
Most countries have customs organizations that keep record of the destination of all exports and the starting place of all imports. They also keep track of the amounts and values of merchandise crossing their borders. Though they try, some of this information is not recorded correctly. Some governments cover up the correct information on some of their trades, with products like military gear and sensitive commodities.
In some instances there are underground markets (black markets) that trade comprehensively and this can alter the real image of trade among nations. The data that customs collects reveal only general trade patterns among all nations in the world.
For international trade to work proficiently most countries need large cargo ships to transport products over oceans from one country to the next f ...