Introduction
Trade and trade relations are responsible for how a country and a region develop and grow. Transport is an essential commerce element since it helps key economies like North America and Europe drive their services and commodities. The essay analyzes the freight trade in both regions by understanding policies and partnerships’ significance in the economic and political landscapes and how they impact global trade. For this to be possible, the essay compares and contrasts the freight systems in Europe and North America, the implications of globalized trade and policies, and reviews future research.
Comparison and Contrast in the Freight Systems
Both freight systems are similar yet different relative to infrastructure, technology, and used terminals and modes. In both European and North American freight systems, commodities transportation is enabled by using containerization and shipping containers (Rodrigue, 2020). Next, efficiency in operation is enabled by technology adoption in both systems, which makes work faster and easier. Such is evident in visible storage facilities like refrigeration of transported products. Moreover, the European and North American freight systems have transport mechanisms, like fast trains, which helps in time-saving (Hill, 2022). Both have modern harbor structures that facilitate loading and offloading, allowing easy packing and unpacking with utmost efficiency. Contrastingly, logistical differences between Europe and North America result in tactic distinction in the regions exemplified by the 1996 considerable variations in the intermodal rail terminals and networks are evidence of such differences (Reis & Macario, 2019). Through this, infrastructure is the main contrast between European and North American transportation systems, which are facilitated by climate and geographical differences between the two regions.
Implications of Globalized Trade and Policy
Another contrast between the European and North American freight systems is evident in trade globalization and policy implications. In North America, the U.S. has geared its foreign trade policy to strengthen its economic and political position in Asia in the last few years (Hill, 2022). The U.S. has considered this option to create a more secure and robust economic position in Asia while trying to curb the growing Chinese assertiveness and influence in global economic policies and politics. Through the policy, the U.S. aims to increase industrial inputs and create new jobs by bolstering its position and balancing its external trade in the global trade index (Reis & Macario, 2019). The policy implication affects how the U.S. relates with the European Union. Policy preferences toward China, at the expense of the E.U., affect European trade policies. One such effect is the creation of trade relation options between the E.U. and China, consequently creating a dilemma for China (Rodrigue, 2020). The E.U. provides a more comprehensive and new market and is keen to maintain its relationship with the U.S., especially after the Transatlantic and Pacific trade and investment deal.
Future Research Review
Looking into the future of trade between the two regions, it is possible to envision plurilateral trade relations in how the two trade with other regions. One example is the Transatlantic commerce and investment company and the Transpacific Partnership (Hill, 2022). The trade relation incorporates the U.S., the E.U., and Asia, inspired by weather changes in global geography that have resulted in raw material supply changes. Moreover, the trade relations have been contributed to by the emergence of innovative new market terms prospects. The exciting part is the existence of projected global growth, which is becoming more concentrated. The significance of the projection influences the policy-making process, especially how to trade regions make their decisions.
Conclusion
The transport sector enhances trade and is significant, especially in logistics and freight transportation, since it fosters global trade. Global policies and trade implications can be tremendous for the future of trade relations among different regions. The emergence of new policies impacts the formation of trade partnerships, which influences the economic and political landscapes globally. The outcome of such changes is the creation of new effects on future trade and commerce.
References
Hill, C. W. L. (2022). Global business today. 12th ed. McGraw Hill LLC.
Reis, V., & Macario, R. (2019). Intermodal freight transportation. Elsevier.
Rodrigue, J.-P. (2020). The geography of transport systems. 5th ed. Taylor & Francis Group.