Question

What was the most important effect of the Panama Canal on trade

Answer 1

It connected the Atlantic to the Pacific. Traveling times shortened and more trade was the result.

Answer 2

The Panama Canal is an interoceanic navigation route between the Caribbean Sea and the Pacific Ocean that crosses the Isthmus of Panama at its narrowest point, whose length is 82 km.

Since its inauguration on August 15, 1914, the channel has managed to shorten the maritime communication in time and distance, boosting the commercial and economic exchange by providing a short and relatively cheap transit route between the two oceans, decisively influencing the patterns of world trade, driving economic growth in developed and developing countries, as well as providing the basic impetus for economic expansion in many remote regions of the world.