International Trade Disadvantages

Why international trade? It enhances development by generating more opportunities for investment and it reduces poverty. It motivates competition amongst countries. It makes easy diversification of exports. It helps to lower consumer prices on goods and services. It improves the quality and standards of labor. It helps with cutting government spending. It builds stronger relationships between countries. It generates more opportunities for employment by creating stable jobs with higher incomes improving the livelihood.
In relation, the definition of international trade is the exchange of goods and services between international borders. It allows competitive pricing in the market, making more affordable products for the consumers. And it affects …show more content…
One factor of these disadvantages is that the country’s local production could suffer. It could ruin our domestic industries and it could cause distress among the people. Wal-Mart is a good example of this disadvantage. When China entered into the World Trade Organization, there was an assumption that this would improve Unite States trade deficit with China, and job opportunities would be created in the United States. Unfortunately, when Wal-Mart came into play with trade with China, it caused some negative aspect of the United States and China. In the United States, 200,000 jobs had been lost because of the growing trade deficit with China. It caused the United States to increase their foreign debt and losing export capacity. Meanwhile, China had to depend on the United States consumer market for their employment generation and had to put an end of their purchasing power, with a weak currency, and making it difficult for China to invest in public goods that could benefit their households. Unfortunately, Wal-Mart’s involvement with China did not help both the United States and China. It literally affected both of the countries economic