Question

Q. Discuss the disadvantages to trade.

Answer 1

There are some disadvantages to international trade.

One of the most important disadvantage is dependence on foreign industry and foreign good home country. As a result of trade many domestic country becomes fully or partially dependent on the other country and other industries of foreign country.

Another disadvantage is due to trade home country's comparative sick industry face very difficult to exist in the market and compete with the foreign country's product. The less develop domestic industries are not able to compete with foreign countries.

Another disadvantage is capturing of domestic market by foreign companies and new home industry can not get any incentive to build up their industry. There can be a possibility of monopoly by foreign industry in that region.

The home country can import different goods which can be harmful sometimes and it actually adversely affect the nation and society.