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International trade has always been an attractive idea for merchants and businessman. There is always an opportunity to sell more, make more profits, increase the market share, remove seasonality fluctuations of demand and supply, increase in productivity, and of course a business or even a country learns a lot on the product development technologies and strategies from doing business with other countries or regions. Trade also leads to higher GDP, better and more choices of products for consumers, increase in competition in domestic market leads to competitive prices which is good for consumers, competition also leads to better quality in goods and services, and reduces unemployment and poverty. Thus, this leads to growth and maturing of a countries economy as a whole and also the businesses involved (Advantages and Disadvantages of International Trade).
The United States monetary system has the largest impact on global and domestic economy. Global economy includes American trade and imports with other countries; domestic only involves the economy in the United States; and fluctuation has the greatest effect relative to other currencies. The value affects company profits, budgeting and manufacturing costs. It has ramifications on capital investment, plant openings and closings. For example, some companies that have outsourced customer service and call centers to India have returned these centers to the U.S., since the weak dollar has eroded the cost benefits of operating overseas. Also, large scale imports through international trade from China have replaced domestic production and consequently cost close to a million jobs (International Trade).Tariffs are usually imposed on imported goods. Tariffs increase the cost of imports, which causes the consumer surplus to decline. When it comes to thinking of the