A trading nation is a nation where domestic trade constitutes a large portion of its gross domestic product. It is usually a developed nation that has developed an efficient internal economic system and relies on exports for growth. More specifically, it is an economy that has been thoroughly dependent on foreign trade for over a century or so and relies on that trade to remain competitive and survive the ups and downs of a mixed economy that is as varied as the nations that make up the trading nation. Trading nations have very stable economies because they have developed the means to protect their domestic interests through the successful operation of their domestic financial systems. The stability of these nations ensures that they are able to continue facilitating trade with other nations despite the fluctuations in national interest.
Growth is facilitated by the openness of an open economy and the ability to trade freely internationally. It is also facilitated by the ability to access a variety of goods at a low cost, allowing international trade to boost the gross domestic product and become the engine of a growing economy. In this respect, the European Union and its Common Market are often compared to a trading nation because the former allows member states of the Union to freely trade with each other. Similarly, a similar situation can be said for the euro area, which is largely closed off from the rest of the world but enjoys high levels of trade thanks to the various trading agreements between different countries in the area.
Conversely, a trading nation like the United States relies on exporting its goods to the rest of the world in order to gain a variety of benefits. This means that the amount of US imports that are sold to the rest of the world is considerably lower than the total amount of products that the United States sells to the rest of the world. Import and export deficits are a major problem for a trading nation, as a substantial portion of its national income is generated by the amounts of imports and exports that it receives. The European Union and the United States share a similar level of trade, but the European Union’s trade surplus has allowed it to become more integrated and progressive, while the United States continues to rely on exporting its products to the rest of the world in order to maintain a comfortable balance at the budget ceiling.
However, a “territory” is also being talked about here, and the meaning of this term is “the area between two nations.” A “territory” includes the economies of Canada and Mexico, both of which are relatively small and have yet to reach the level of global prominence that many other countries have reached. A “territory” would therefore include Canada and Mexico, but it would also include all of Latin America and all of Central Asia. A “territory” has thus become the literal definition of “an entire country,” and a “territory” is often used to refer to the economies of Canada and Mexico together. And just like the United States, “a trading nation” can be an oxymoron at times.
Many advocates of open markets and free trade theories believe that a trading nation can become a successful nation by allowing the free flow of trade. However, there is no doubt that a nation can become a trading nation by trading with its neighbors. One of the most powerful nations in the world is Canada. At the turn of the 20th century, Canada was the United States’ primary trading partner, and the United States was indeed a trading nation. However, today both Canada and the United States are less than trading partners. Today, much more than trading occurs between Canada and the United States.
In the last decade, the United States has become a less-trading nation overall, and much less-trade-farming-importing-export oriented than ever before. While our trading partners in the European Union enjoy free trade arrangements with all of the EU’s member states, the United States has had a trade relationship with only Japan, with none of the EU’s members. As a result, the EU as a whole enjoys far greater exports and imports from the United States than the United States does. That means that Canada – with our largest trading partner, Mexico, enjoys far more exports and imports than the United States does. Therefore, while the United States is losing its relevancy for exporting and importing, Canada is gaining on the US in every aspect of global trade.