Trade Between Countries

Rebecca Crutchfield, Lauren Kuechler, Daniel Day

5.08 Culminating Questions

1. Both Canada and Vietnam have trading policies with the U.S., but I think that Vietnam could trade more with the U.S. to meet their economic goals. Vietnam has a command economy and a very low EFW Index. If they trade more with the U.S. and understand how our mixed economy works, they might be more willing to change theirs. When Vietnam sees how high the U.S.'s GDP is they will want to make more money in their country and would most likely see how the U.S. accomplishes our high GDP. Their GDP could increase if they change to a mixed economy. Even though Vietnam's unemployment rate is lower than the U.S.'s, they might be able to create more jobs if they have a mixed economy. More of their citizens would have a greater chance of getting a job in a mixed economy.

2. The U.S. would benefit from trading with Canada the most. First off it is right above the U.S. and it would be easy and fast to trade. Also, Canada has a lot of forests that could provide the U.S. with lumber and paper. Since the U.S. is trying to preserve its forests and trees, this would be a huge benefit for the U.S.

3. Canada would probably be most open because the U.S. has a similar economic system and the two countries are so close together that it would be easy to trade goods. Since they are so close together the time it would take to trade goods would be fast and it would not cost as much money.

4. It would be easier for the U.S. to trade with Canada. Canada is in the top five of the ranking of free trade zones. Even though they are not allowed for free trade between Canadians, the U.S. and Canada are in the North American Free Trade Agreement (NAFTA). NAFTA allows the U.S. and Canada to trade freely, without any barriers.

5. In Vietnam the inflation rate is very high. The high inflation rate makes it very difficult for Vietnam to trade with other countries because they will have to pay a lot more money for the foreign goods. Also, the high inflation rate makes it harder for Vietnamese citizens to purchase goods. Everything is more expensive and the lower class will have a difficult time purchasing goods. Canada has a low inflation rate. That is good for them because its prices were very high earlier this year but have been decreasing. This is good for their society because the prices are lowering allowing the cost of essentials for living to decrease and allows the lower income class to be able to purchase items easier.

Major Industries for the United States, Canada, and Vietnam

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