Advantages & Disadvantages of International Trade Essay
1.4 ADVANTAGES & DISADVANTAGES
OF INTERNATIONAL TRADE
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…
New Technology & Materials
New technology promotes competitiveness and profitability. If a business could create a machine that works better, faster, or cheaper (or all three), then the business will have produced a more competitive product for national and international markets. T he biotechnology industry in Canada is second only to the U.S.
Diverse Products and Services
A century ago, Oranges were considered a rare treat; parents put them in stockings for children. Now, we can buy oranges by the crate at local grocery stores th anks to better preservation and trading technologies. Foreign trade turns the world into a giant market, delivering food, fashions, etc.
New services such as banking, travel, and consultation are also available now.
Business competition is no longer on a city scale; instead, businesses compete against worldwide businesses. The result is better quality goods, lower prices, and functional design. Disadvantages of International Trade
The Global market has made it easy to buy and sell international goods . While this has benefits, it also presents a problem. Such trade can cause countries to be prosperous for a short time, but leads to economic exploitation, loss of cultural identity, and even physical harm.
Support of Non-Democratic Systems