Why nations trade and international trade is measured

Wherever you’re reading this, stop and look around for a minute. You might see cars that were made in Japan running on gasoline from Russia or Saudi Arabia, mobile phones made in South Korea, food grown in Canada or Mexico or Chile, a digital music player made in China, clothing from Vietnam or Italy, industrial equipment made in Germany—and dozens of other products from every corner of the globe. Conversely, if you or a family member works for a midsize or large company, chances are it gets a significant slice of its revenue from sales to other countries. In short, we live and work in a global marketplace. Moreover, while the United States remains one of the world’s most competitive countries, dozens of other countries now compete for the same employees, customers, and investments

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