Egypt and US Relations

The Newsday article "McCain says US, Egypt 'must be friends" points out that Egypt and the US have had poor relations recently. The two countries have been at an all time low in their ability to coexist. Some of the US government wants to cut off these relations but John McCain argues otherwise. He points out that the relationships must adapt instead of be cut off. The key to their relationship is trade, a necessary aspect of both economies.

These two countries are a key example of the need for specialize and trade in order to maximize economic opportunity. Without the two trading, both countries would have issues selling and receiving certain products. Through US trade with Egypt, economic prosperity is brought to a higher level. Most trade is done with agricultural resources and military products. Looking elsewhere for these products would probably hurt both economies through new transaction costs, and new relationships would probably be at less favorable prices. This would hurt both economies, but not as much as if they exhausted domestic resources to produce these goods locally. Therefore, the US and Egypt having good relations is very beneficial to both economies.