The Shape of Global Markets
A trading nation is a nation in which foreign trade constitutes a high percentage of its gross domestic product. A trading nation’s currency value always moves up and down against other currencies, especially when there are changes in government policies or foreign investments. In order to determine the significance of such statistics, it is necessary to understand how and why they come into being. Some of the many factors that affect the value of a nation’s currency include its location, culture, history, stock market, political stability and more. It is important for traders to understand all these aspects so that they can have a better understanding of how currency trading nations work.
China is considered one of the largest trading nations in the world. Its economy is largely based on exports from its main agricultural produce sectors, as well as heavy industry. China manufactures most of its goods using the production facilities of millions of small-sized enterprises. Because China’s overall economy is very dependent on foreign trade, the country’s external trade contributes significantly to its GDP. Exports constitute about 90% of China’s total merchandise imports.
There are two types of trading nations – free and unfettered. A free trade zone refers to a nation that freely allows foreign trade, while an unfettered zone is one in which certain restrictions are imposed on foreign trade. Free trade zones like the European Union allow both goods and services to flow freely through its borders. Unfree zones, on the other hand, limit the freedom of international trade by imposing various restrictions, which include import and export duties, tariffs and other limitations. The U.S., Japan, Canada, EU and other developed countries are considered unfettered. However, they have become accustomed to stringent measures aimed at protecting their industries from imports and exports that may bring financial harm to their countries.
The term “trading nation” has been increasingly used today to describe a nation that meets certain criteria that other international trade players have already met. First, it must be a open market that gives the consumer more choices than what he or she could get anywhere else. Second, it must have a consistent, steadfast and flexible system for foreign trade, so as to remain competitive. Third, it must be able to provide its consumers with a level playing field when it comes to global trade.
Canada has the advantages of being a North American trading nation that offers access to both North America and the EU market. Its economy has outpaced the U.S. for decades, thanks to global trade. With a free trade zone, Canada’s products and services easily pass through the U.S. ports and can reach the EU. As a result, Canadian exports have helped contribute to the growth of the EU’s economy while at the same time helping to make Europe more self-sufficient. As a result, Canada continues to be an important player on the world stage.
Canada’s policy of allowing unfettered access to both sides of the border has resulted in a thriving domestic economy. In fact, in recent years, Canada has become the fastest growing of all the developed countries. This is largely due to the easy availability of resources. While other countries struggle to find ways to create more jobs for their people, Canada has developed effective policies that have made it possible for its people to have the means to buy and export goods and services. In fact, in this global economy, where the rules are bound to be different, there is no reason why Canada can’t become the biggest trading nation in the world. And right now, it seems like it is destined to rise to that challenge.