Advantages & Disadvantages of International Trade

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Chapter 1: International Interdependence 1.4 ADVANTAGES & DISADVANTAGES OF INTERNATIONAL TRADE Pg 22-27 Advantages of International Trade The fundamental reason for international trade is to sell something that we don’t need and to buy something we do need. Trade creates jobs, attracts investments, attracts new technology and materials, and offers Canadians a wider choice in products and services. People spend, save, or pay taxes with the money they earn in their jobs. The government uses taxes to provide services, which creates more jobs. When people save, the capital markets lend money to others, who will spend it on consumer goods, or open or expand a business, therefore creating new jobs. When people spend money, it…show more content…
For example: Landowners in Nicaragua and El Salvador want farmers to grow coffee beans because it is a very profitable cash crop, however, the farmers would like to use the land to grow more food for their families. The farmer’s wishes are ignored because they do not actually own the land. Cultural Identity Issues Culture is a major export in the world. It displays and promotes values and lifestyles worldwide. The "culture consumer" in other countries is sometimes overwhelmed by American ideas. Products also carry cultural ideas and messages. There are values of the culture the make the product. For example: Coca-Cola, McDonalds, Nike, and Microsoft all sell products that symbolize American values and symbolize and reflect American corporate culture. Social Welfare Issues: Maintaining safety standards, minimum wages, worker’s compensation and Health benefits are all social welfare issues that cost business money. If a running shoe is made in a country where these issues are not met than the shoe can be sold for less in Canada. The down side to this is that substandard safety conditions cau se death and injury in the workplace. Environmental Issues: In Canada, businesses are urged by the government and environmental groups through laws and regulations to keep our air, land and water clean. This is a costly process so businesses decide to move their operations to countries; i.e. Mexico,
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