Gkresia Nikolaidi, David Steve Pacheco, Edgardo Humberto Panay Jr, Mia Solange

Patino,  Nicole Sofia Peng, Ana Lorena Perivancich

IDS2651
Language, Body, Mind, and World
Professor Gabriel Quintero
September 27, 2022

How Does Language Influence Exports Between English and Spanish Speaking Countries
Draft

The trading market has always been a significant event from the time it began its operations
in 1792. The economies of many regions have benefited from exporting goods and services
together with importing goods such as fruits that do grow locally thanks to the weather, as
well as certain enterprises that manufacture garments the wider public might want to buy.
Although it isn't completely essential, using a common language and the ability to
communicate effectively is essential for encouraging trade between two nations. As a
means of interaction, language is used to facilitate trade and facilitate understanding among
collaborating economies.

Jacob Marschak, who created the term "economics of language," established the connection
between economy and language in the 1960s. Immigration, international bilateral
commerce, and foreign direct investment (FDI) are all topics covered in studies on the
economics of language. The choice of location is influenced by one's level of language
proficiency in the host nation. With the advancement of new information technology,
communication costs have drastically fallen since the last quarter of the 20th century.
Similar to how using the same currency has an impact, a shared language can lower trade's
fixed costs. Over time, four distinct methods of evaluating linguistic similarity between
languages have been created. These include open-circuit and direct-communication
languages, the Language Barrier Index (LBI), Levenshtein's distance, and Chiswick &
Miller.

Language barriers between trading countries carry an additional cost because the
transactions need to be made through an intermediary and the risk of errors that could cost
one or both countries, increases. Trade between countries is enhanced by the use of a
common language, as it increases communication and understanding between the
negotiating parts. Cultural or colonial ties can be a contributing factor to increased trade, as
common elements ease communication and reduce transaction costs. Immigrants are
especially favorable for a country’s trade, as they bring knowledge of their local markets
and contacts, as well as their language. They are useful for establishing connections
between the home and host countries and reducing communication costs.

Immigrants play an important role in trade as they might find it easier to establish networks
and find trading partners in both regions. This might happen due to the fact that the
immigrant might possess advanced knowledge in both languages making it easier for them
to find partners in their new region. They also have an advantage when it comes to dealing
with other immigrants proceeding from different Spanish speaking countries (specially
those from Latin America) due to the many cultural similarities found amongst these
nations. These things usually make trades that involve immigrants more amicable, effective
and cheaper, than other interactions.

There is no doubt that in order for International trade to take place people need to be able to
communicate effectively with each other. In the past, language and the ability of traders to
communicate were one of the main obstacles to International trade. But, in the present, with
the help of technology and the internet these processes have gotten easier. For example, the
internet has gotten people from opposite sides of the planet, and even people had no clue
each other's countries existed together. Another advantage is that since trade can be done
from opposite sides of the world, meaning that more and more countries can receive items
or food that are not available in their own country.