An Analysis of External Trade Between Kenya and the U.S

Abstract

External trade is the exchange of capital, goods and services across the international borders or territories. International trade has been regarded as an engine of growth, which leads to steady improvement in human status by expanding the range of people's standard and preferences. Since no country has grown without trade, international trade plays a vital role in restructuring economic and social attributes of countries around the world, particularly, the less developed countries. The main objective of this study was to analyze the impact of external trade between Kenya and the U.S 2000-2015. The study is a qualitative research and uses the Survey Research Design to explain the impact of external trade between Kenya and U.S 2000-2015. This research was based on primary and secondary data. Primary data was collected by the use of an interview guide. Secondary data was gathered from Kenya National Bureau of Statistics, journal articles and public documents. The population of the study was employees working with the Ministry of Foreign Affairs and International Trade, U.S embassy in Kenya and Kenya Private Sector Alliance (KEPSA) in Nairobi County offices. The data collected using interview guides was analyzed using content analysis. The findings of the study indicated Kenya and the U.S have been improving their existing trade agreements since independence. It was also found that bilateral trade affairs have helped minimize trade deficits through negotiating free trade agreements with Kenya. The study concluded that the countries should encourage free trade since specialization and free trade would allow them to become more competitive and innovative. The study recommends that there is need for the Kenya and U.S government to formulate new trade policies that will analyze the short-term incentives of a proposed agreement for the potential partner.