Pros
and Cons of International Trade
In this Globalization Era , world presenced to
cooperations among countries and cross borders between countries who involved
in with certain regulation ,especially cooperations in trade(economic) field.
International Trade did by all countries based on principle which be explained
by Great Economist Adam Smith that is “Principle of the Mercantile System” on
17th century. That Principle prioritize that to increase a nation’s
wealth by imposing government regulation concerning all of the nation’s
commercial interests,it was believed that national strength could be maximized
by limiting imports via tariffs and maximizing exports.
International Trade has a role in intensify relationships
among countries,prevent conflict, and increasing nation’s wealth also make
state population more prosperous in their revenues by economic growth. But
,other than that,International Trade also conducing interdependence between
developing/poor countries with developed countries. We can conclude that
countries in the world was divided into , there are countries that get more
benefit and there are also countries only get less benefit or even just be
victim of International Trade exploitation.(developed from Comparative
Advantage Theory- David Ricardo)
This Article would like to inform you perception about
advantage and disadvantage by doing International Trade :
Pros
-
International
Trade can provides job,industrialization in all kinds of goods resulting companies,factories
also other industries and manufacturing sectors which require skilled and
trained labor , that means it will open up vast employment.
-
Promotes
Efficiency and Facilitates diffusion of technology, investment and development
in innovative technology will promote efficiency to human life(ex: by telephone
we can easily communicate with people in other places,by airplane we can easily
mobilize into other places)
-
Increases
diversity and quality of consumer goods,strong competition will improve the
competitiveness and quality of goods, companies compete to take consumers
attention to purchasing their goods
Cons
-
Destroy
national industries and threaten national culture ,open market will make
foreign products can easily enter into a state and inflicting reduce consumer’s
interest to local product , developing countries society also like to use top
foreign brand in their style , local culture being disliked and gradually
displaced
-
Adverse
impact on the Environment, industrialization and investment especially in
mining sector has negative impact on the surrounding environment like
contamination,polutions,excessive natural resources exploitation,animal
extinction and many more.
Noto
Suoneto
Thanks
(Resources : www.investopedia.com/terms/m/mercantilism.asp)
(Resources : www.investopedia.com/terms/m/mercantilism.asp)
2 comments:
I agree with your cons about international trade but maybe I want to add that those cons tend to developing country. I think that, developed country has no big problem with their culture instead their culture are spread fast with international trade. The bad impact of environment also happened in developing country because many of industry in developed country were relocated in here. So, I think that the cons of international trade are just for developing country.
Thank you
Gisela Bianca - 1701306070
thank you for your addition , so , as the developing country"s citizen (indonesia) , we should to stop this dicriminating action between developed country and developing country , and as a international relations student , we have to contribute to this country or our government to make a legalize policy that give more advantage/benefit to our society , and i think that we should to support the government and the related side to have a food sovereignty, so we don't need to do import , do you agree with me? :D
Post a Comment