International trade has always been very important to the United States when it comes to its economic health. The United States has received many imports, mainly from China and Japan, which supplement its economy. The United States imported more goods from other countries than it exported. Recent U.S. import and export data indicate that exports account for 9 percent of U.S. GDP and 15 percent of GDP is made up of imports. Compared to other countries, the United States is the largest exporter of products in the world, with eleven percent of global exports being absorbed by the United States. However, exports and imports as a percentage of US GDP are low compared to Belgium, Korea, Great Britain and Germany, where these countries have a percentage of imports and exports compared to the GDP higher than that of the United States. Comparative AdvantageThe basic meaning of Comparative advantage is that one entity could produce more of a good or service at a lower opportunity cost compared to two goods produced by two entities. The concept of comparative advantage is a very important concept in economic decision making because comparative advantage sees which products two entities can efficiently produce more than one product and it helps in establishing the terms of trade between the two entities. Without trade, there would be no production gains that would result from commercial action between two entities. An example of the comparative advantage that would come into play is that, for example, the United States can produce ten Playstation 3s and twenty-five Microsoft Xboxes and Japan could only produce twenty Playstation 3s and ten Micros..... . middle of paper. .....a discussion centered on the Buy American provision of a 2009 stimulus package reports that "FedEx CEO Fred Smith argued that the plan, which would in part require companies to buy iron and steel, steel made in the United States would ultimately harm global trade." (2009). The similarity between the Buy American debate and the Smoot-Hawley Act is marked by the goal of saving domestic jobs in the United States. The result of this policy would be costly to the consumer and would not benefit the United States, as the United States is a global power in the international trade market. References Bruce, Mary, (2009), “'Buy American' Provision Draws Fire.” Retrieved from: http://abcnews.go.com/ThisWeek/CEOProfiles/story?id=6780785&page=1Kelley, Martin, (2011), “What is the Smoot-Hawley Act? », Retrieved from: http://americanhistory.about.com/od/greatdepression/f/smoot_hawley.htm