What Are The Disadvantages Of International Trade

Some Major benefits of international trade include the reduction of poverty, expansion of business opportunities for local companies and reduces costs for consumer.

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

Trading is very important economic factor. Trade between different countries depends upon different factors. There are some factors due to which bilateral trade between two states is enhanced. On contrary, there are some factors which restrict or reduce the trade between two countries (Meyer, 2011). Factors which enhance trade include different cultural, political, geographic and economic aspects which are common between the 2 countries involved in bilateral trade with each other. While trade is reduced or restricted, if two countries are completely different culturally, politically, geographically and economically (Siegel, 2011). For example, trade between two countries, having common boarder, currency, per capita income et cetera, will be lot more high than those countries which do not share these factors common with each

International trade is believed by economists to be good for both countries involved. It promotes financial and economic growth throughout the world. It creates jobs, sustains economies, improves standards of living, promotes competition, lowers prices, and strengthens the bond between nations. In 2012, approximately 4.9 million people were directly or indirectly holding jobs that were associated with the production of goods and services sold to other countries (cite). Many of these jobs are manufacturing jobs that produce large amounts of products to sell to other countries. This is called an export. Export sales help maintain high levels of employment by breaking down barriers of unfair taxes. With opportunity to buy product from other countries, prices remain competitive.

The benefits that arise from international trade can be derived from nations that have acquired trade power and established their revenue. According to Stanley, “nations with strong international trade have become prosperous and have power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty.” Over the years, this type of trade has thrived as a result of the numerous benefits that come from importing and exporting good and service on a global scale, more specifically because of the increasing efficiency as well as the effects of supply and

International trade is the exchange of goods, capital, and services across international borders or territories. In most countries this trade represents a significant share of their (GDP) gross domestic product. This type of trade has political, economic, and social importance to all nations involved. There are many factors surrounding international trade, such as, advantages, limitations, foreign exchange rates, and others. As we review these factors, this will allow us to better understand how international trade truly functions.

What is international trade? International trade is the bartering of goods in exchange for financial compensation between two international countries. Why is this beneficial? The country purchasing the goods are receiving items that they either cannot make in their home country, or they are purchasing them at a lower price than locally available. The country selling exports receives more funds than they would on their own land, but they are also continuing a relationship with a foreign nation that they are receiving exports from.

a. International sales and trade can be a source of higher profit margins through additional sales. Unique products or technological advantages can provide competitive advantage that a company wishes to exploit by expanding sales in a foreign market

Companies move to developing and third world countries for cheaper production cost. In those countries may be they do not need to provide the workers any benefits and the salary requirement is lower compared to what they had to pay in the home country. In this way the industrialized countries exploit the labor force of less economically developed country. They pay them less but earn more profit (by reducing labor expense). Child labor is also an

Trade allows countries to use their resources more cost-effectively through gaining expertise. It allows countries to become more productive and able to gain high a standard of living and will keeping the cost of everyday products minimal. Without International Trade, most nations would be unable to feed, clothe, etc. Even countries which are rich in resources would also suffer immensely without trade. Some types of products would become unavailable, or

     International trade has been in existence throughout history and has an economic impact on the participating countries. Trade in most countries has a share of the Gross Domestic Product (GDP) and helps to boost the

Globalization gives companies access to wider markets and consumers access to a greater variety of goods and services. But the benefits of globalization are not always shared by all of the parties involved in trade. Unfortunately, developing countries—which need the potential benefits of globalization the most—are often the losers. "The downside of global capitalism is the disruption of whole societies, from financial meltdowns to practices by multinationals that would never be tolerated in the West," the Business Week article noted. "Industrialized countries have enacted all sorts of worker, consumer, and environmental safeguards since the turn of the century, and civil rights have a strong tradition. But the global economy is pretty much still in the robber-baron age."

Political dependences: After researching international trade, it has been proven that international trade attract some form of unequal treatment and discomfort to workers. It impairs economic independence which endangers political dependence

When countries import goods or services from other counties that are still produce in their local industries, it reduces sales of that particular product or services and profit margin of the local industry. For example the prices of made in china product affects the turnover of most locally produced products in Nigeria.

Some of the biggest issue 's in today’s economy is the push for liberalization of foreign trade in developing countries. By compelling nations to modify and ease their trading systems so it can be free from regulations while promoting free trade, only weakens their authority. Trade liberalization needs the reduction of governmental restrictions and intervention so the trade between nations has little or no obstacles like tariffs. Absolute free flow of capital with minimal restrictions promises developing nation’s growth under these systems by having more money for the intent of investment and trade. But what it is not often discussed is how it is necessary for some to suffer in order for others to succeed. Examples include low skilled workers who are under paid and employed by multinational corporations. When large companies move into developing countries they tend to get in the way of domestic policies and in some cases bribe their officials to get their way. Walmart in Mexico paid bribes in order to obtain permit to build stores in Elda Pineda’s alfalfa field, less than a mile away from its ancient pyramids. The problem was that the government wanted to limit growth around the pyramids to prevent any damages. After executives were contacted in the main headquarters in Arkansas, they closed the investigation and did not inform law enforcement