Arguments Arise when Discussing International Trade
“Each country should not only produce what it has an absolute advantage in making, but what it makes at a lower opportunity cost than of another country. Which is best simplified by saying that comparative advantage is a good that sacrifices the least to produce. This aspect of trading helps decide what a country should trade, but also the price in which they should trade it for in terms of other goods/services. In addition, comparative advantage is also a good that can be produced at a smaller cost than that of the others, by these means, no other country will be left out of the international trade under a free market system. A country can be too poor to compete in an absolute advantage, but not under comparative.
Arguments arise when discussing international trade, such as: should we trade with countries that use child labor? The simple answer is no; however, it still happens. To combat this recutting issue there have been many international treaties; “we must engage governments and businesses, at home and abroad, to fight all forms of child labor prohibited by the International Labor Organization (ILO)” (Lesley). Over 10 countries use children or slaves to produce a variety of labor-oriented goods; despite this cruel act the United States and numerous other countries still trade to get the necessary sugar cane and cocoa. The devastating part is that since these actions aren’t occurring on the United States soil, there is a barrier preventing us from acting on the labor. It is hard to pinpoint which country the good is coming from, allowing them to slyly pass the borders. The best option in regulating this type of trade is to make citizens aware of what products being imported are made by slaves or children.
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There are also various risks associated with international trade and can be a negative effect if these complications arise. For example, in international trade there are obviously other countries involves; however, each has different morals, religions, and expectations. If an expectation isn’t met it could ruin a good business’ reputation, leaving them doomed in the international trade business. Another side effect of international trade is proprietary identity theft; which is what happens when a foreign business steals a company’s brand, business information, or identity.
International trade is overall a great aspect throughout the world that allows many countries products that they wouldn’t have otherwise. International trade is very common among businesses for various reasons that positively contribute to the well being. The growth of a business is important; international trade set up the foundation for internal growth by selling more than just domestically. To further help their company, international trade allows their work to increase financial performance by not only steering around domestic competition but also by encouraging market performance and competition. These businesses that contribute to international trade can help improve the economy through the creation of jobs and increased export of goods.
International trade has been around nearly since trading began with the theories of absolute and comparative advantage leading the country in what to export and what to import. Over the years barries have been placed on both parties to promote safety and security within a country. In addition, international trade has a wide assortment of positive and negative effects like any other controversial topic. However, international trade can and should be monitored through marketing and trade research to ensure overall success.”