How did the Panama Canal benefit American trade?
(1 point)
The Panama Canal benefited American trade in several ways:
1) Shortened shipping distances: The canal provided a shortcut between the Atlantic and Pacific Oceans, reducing the time and cost of shipping goods between the East and West Coasts of the United States. This allowed for quicker and more efficient transportation of goods, benefiting American trade.
2) Expanded markets: The canal opened up new markets for American goods, as it facilitated trade between the two coasts and with countries in Latin America and Asia. This increased access to potential customers and boosted American exports.
3) Lowered transportation costs: By eliminating the need for ships to sail around South America's Cape Horn, the Panama Canal significantly reduced transportation costs. This made American goods more competitive in international markets and stimulated trade.
4) Increased naval power projection: The canal also enhanced the United States' ability to project naval power globally. It provided a shortcut for naval ships, enabling them to quickly move between oceans and respond to crises or assert American interests abroad.
Overall, the Panama Canal played a crucial role in facilitating American trade, improving transportation efficiency, expanding markets, reducing costs, and boosting naval power projection.