Final answer:
The conclusion about U.S.-China trade is that each country has a comparative advantage in different sectors, resulting in the U.S. exporting high-tech goods and China exporting labor-intensive products. Despite some public opinion against globalization, the trade ties between the U.S. and China are deep due to their complex interdependencies.
Step-by-step explanation:
Based on the information provided, the conclusion that can be drawn about trade between the United States and China is manifold. Both countries are highly technologically advanced with dense networks of transportation and communications. They engage in significant economic exchanges where the U.S. specializes in exporting high-tech and high-skilled labor products such as agricultural products, computers, large machinery, engines, and commercial aircrafts. Conversely, China tends to export products that are more labor-intensive and require less technology, like shoes, small appliances, and toys. This trading pattern is reflective of each country's comparative advantage.
The economic linkages between these nations are deep and complex. The American trade deficit with China has grown significantly, exceeding $350 billion in 2006. Despite disagreements on various fronts like human rights and cybersecurity, the trade relationship persists due to the interdependent nature of their economies and global roles. For example, the U.S. relies on Chinese manufacturing and the Chinese invest in U.S. government debt. However, American public opinion on expanding trade and globalization is less favorable compared to other nations, with China and South Africans exhibiting more favorable attitudes towards growing trade ties.
Additionally, it's important to note that while the theory of comparative advantage suggests trade is beneficial between countries with different opportunity costs, the largest U.S. trading partners are geographically close and have similar high-income economies, such as Canada and Mexico. This indicates that geography can play a crucial role in trade relationships beyond just comparative advantage.