Answer to Question #233632 in English for ABCD

Question

Discuss the government's involvement in trade to Texas and infrastructure

Answer 1

Texas is also a big importer, relying on foreign manufacturers for products, parts, and commodities to keep its manufacturing and commerce industries afloat. In 2019, Texas, behind California, was the nation's second-largest importer, bringing in roughly $294.9 billion in commodities. A complicated web of supply chains facilitates all of this trading. The global commerce in intermediate parts — the components needed to make finished goods — contributes approximately twice as much to the global economy as trade in finished goods. It is especially vital to the automobile sector. Texas' connection with Mexico, its main commercial partner, is characterized by trade in intermediate parts.

International trade increases company opportunities and encourages competition, improved productivity, and innovation while lowering consumer costs. But, particularly in manufacturing, it's frequently blamed for stagnant wages, increased inequality, and job losses. The federal government imposes trade tariffs, which are basically import taxes, to defend home industry. In an effort to preserve domestic sectors, the current administration has imposed tariffs and renegotiated long-term trade agreements, but protectionist measures often elicit retaliatory responses, raising consumer costs.