Question

If the nations of the world were suddenly to cut off all trade with one another, what products might you no longer be able to obtain in your country? How would this affect the businesses and the economy? Choose one other country and identify the products it would need to do without

Answer 1

Ans ) If the nations of the world were suddenly to cut off all trade with one another, what products might we not get in our country ,

• In such a situation of trade cut offs where India is a Labour intensive country than the Capital Intensive country as like USA there will be a major slowdown in the economy siince India exports number of items from Abroad and
• trade cut off means restrictions in import and export activities which will adversely affect the economies of nations as each and every nation has abundance of one and scarcity of another resources therefore it will affect so many activities running in an economy
• hereunder is the list of items which India exports from different nations such as Oil which is around 180 million tonnes being imported,
• precious stones (like gold) where India spends 60 billion dollars to buy jwells,
• Electroniocs which majorly is imported from China as almost every device sold in India either big or small are labelled as 'Made in China'
• Heavy Machinery which are largely imported from Japan and China
• Organic chemicals despite Ancient India being famous for advancement in organic Industry and use of herbal science, At present India depends on imported bio - chemicals
• Iron & Steel , Though the country is rich source iof iron ore it still depemds upon imported iron and steel

Affects of the Trade cut off on the businesses and the economy can be following:

• Increase in Domestic Production : This also works in the favour of economy as the demand for domestic productsb will increase and the overall GDP will get boost up due to this hence increasing the production domestically
• Insufficiency of Resources - Due to trade cut off the resources wont be available as needed for manufacturing of some productions as iron & steel , oil is used in many factories as a raw material hence could alson affect production.
• Increase in Prices :  Since India largely imports electronics from China as it is available at cheaper rates hence the trade cut off will result in increase in prices of the domestic products
• Technological Inferiority/ Barrier :  Being a developing nation India is still behind in terms of technological advancements then the developed nations like USA, Japan etc hence such inferiority will cause a slow down in technological advancement but will also lead to new innovations and ideas within country for self development
• hence above mentioned are few affects which will happenn amid trade cut off among nations on the world.