Date of this Version
Business in Nebraska vol. 52 no. 620
The marketplace is no longer the next community, state or the nation; now it includes Canada, Mexico, Japan, United Kingdom, and South Korea, to name a few major global markets. This translates into new markets for Nebraska's products, as well as increased competition from foreign producers. The purpose of this article is to examine Nebraska's place in this world market. Major trading partners will be identified to provide a sense of how the world market affects U.S. trade. In addition, the impact on Nebraska of international commodity markets at the national level will be examined.
The trend in the international market has been to reduce barriers to trade, or to globalize the marketplace. The U.S. has demonstrated its commitment to globalization through its participation in multilateral trade agreements, such as the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), and the North American Free Trade Agreement (NAFTA). Many economists agree that reducing barriers to trade promotes economic growth. Consumers benefit as a result of greater selection of goods and lower prices due to increased competition. In recent years, the slow growth in the Consumer Price Index (CPI) is due in large part to an increase in global competition. Producers gain access to new markets for their products and raw materials. However, while reductions of trade barriers do increase the U.S.'s competitive position in foreign markets, domestic producers face greater competition for U.S. market shares from foreign producers.