Disadvantages Of International Trade

840 Words 4 Pages
International trade is the exchange of goods and services between producers and consumers of various nations based on their economic units-agriculture, industry, and service enterprises. There are benefits and negative aspects of international trade. Careers in international business is rising which leads to Globalization. Some critics have some opposing arguments against globalization.

The benefits of international trade are as follows.
Comparative advantage. Businesses within their nation produced goods based on their regions suitability. For example, Portuguese are better producers of wine due to their climate compared to English woolens. The English had ideal conditions for raising sheep and getting wool for clothing. Thus competitive
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Globalization is the interlink of different parts of the globe related to their economic, social, cultural, and political means. Despite some advantages that entails with globalization, there are critics or groups that oppose the concept of globalization. One argument is the fear of increasing power of unelected multinational corporations, financial markets, and non-government organizations (NGOs), whose decisions can have direct and rapid effects on ordinary citizens ' lives such as eroding local cultures and exploitation of workers. Organizations supported by United Nations such as World Trade Organization (WTO), World Bank, and IMF have been established for withstanding globalization by imposing tariffs and promote international monetary cooperation. Therefore, globalization business concept in terms of international trade has never had a completely free trading system or laissez-faire …show more content…
It is recommended for one 's best interest to know something about the culture, etiquette, religion, business values, and particular communication styles before landing on foreign soil. One example, countries within the United Arab Emigrates will generally be tolerant of Western culture, while countries like Saudi Arabia will tend to be strict regarding their company dress codes. A professional who understand international trade agreements and treaties between nations have a better advantage of constructing a business agreement with other countries by understanding international laws. Laws in some countries are not democratic. Some countries are run by a theocracy, in which the legal system is ruled by religion.

Some examples of top international businesses include automotive, fast food, restaurant chains, and fashion outlets. Entertainment, such as pop music and motion picture, is a giant among international business trades.
International trade and globalization are parallel in concept. The benefit of having more connected, more global, more mobile, increasing of creative class, and collaboration through globalization concepts bring the world together as one unit and to live in harmony. These concepts promote understanding the differences on a global scale henceforth working together to find the solution to global issues-unequal distribution of wealth in the world.

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