Question

How can this 5 paragraph essay be written better?

"International trade plays a big role in today's economy as it did the last couple decades. There are many advantages and disadvantages of international trade. With the rapid changes in the technology field, the market had to adapt. Some officials say there is still some catch up to do with international laws associated with the technology trade.

In the many advantages with international trade, I feel price stability is a huge factor. It equalizes the price of goods throughout the world. It also tries to stabilize the price so it doesn't go up or down. Lets take the trade of Micro Chips for example. Micro Chips are used in all of technology from Cell Phones, Desktops, and Televisions. Korea is the biggest Micro Chip manufacturer in the world. You've probably heard of their most profitable company called Samsung. Samsung is able to produce such a large amount of Micro Chip product, that it drives the price down which forces other companies to try and match that price as best they can which in turn gives a fair market value for the consumers.

Another advantage to international trade is the increase in efficiency. International competition forces countries to produce higher quality goods at the lowest price point possible to stay relevant. For example, you see poor efficiency come from China because they only care about having the lowest cost but not the greatest quality. Samsung being the company it is, produces the best quality at the best price point in the market. One of the reasons for this is the amount of resources they put into the research and development sector. The better Samsung does quarterly, the more resources they put into research and development, the more the product efficiency grows.

Looking at the other side of the coin, there are many disadvantages to international trade. One being the support of local industries. An example of this would be Apple. Apple has the knowledge and money to produce their own Micro Chips, but due to Samsung's efficiency, Apple outsources their Micro Chips from Samsung to make Apple products affordable. Beneath every Apple product is a bunch of Samsung Micro Chips.

Not many people know this when they try and support products made in their country. Sadly, every big corporation outsources to Korea and China to drive their product prices down to compete with the market. The second disadvantage of international trade would have to be labor laws. Apple, being the second biggest cell phone manufacturer out sources their phones to China which means they out source their employees to China. China has drastically different labor laws than to the US. In China, they are not allowed to have a Union. The average hourly labor cost in China is ~$0.06 whereas in the US the average is ~$21.60 and there is nothing the Chinese workers can do about it because it is not a democracy over there. "

Answer 1

International trade is the backbone of the world economy and it depends upon labor laws and is governed by various regulations which are continuously changing as the world is becoming a globalized market.There are various advantages and disadvantages associated with international trade which are as follows-

The advantages of international trade

First, it stablizes prices all over the world.As the economies open themselves and engage in international trade,they have to set the prices of the products equal to the global prevailing rate otherwise people may discard it.It increases competition and standardization of products while also lowering the cost of production and setting a unifom price all over the world.Example Samsung which produces micro chips and enjoys economies of scale which lowers the cost of chips all over the world and sets a uniform price.

Second,international trade increases efficiency as the countries engage in manufacturing of those goods which they can produce more effectively or have a comparative advantage on.This increases specialization and increases efficiency as the country gets more productive in producing a particular good,increasing its quality and value at a lower cost.This increases the revenue and the firms can put in extra revenue in research and development to furthur increase the efficiency.

The disadvantages of International Trade

Firstly,with international trade and increase in competition,every manufacturer looks to decrease their cost of production and for this,they outsource their product from different countries where the input is having more quality at a much lower price which hurts the domestic industry the most.Example Apple outsourcing chips from Samsung for their products as samsung efficiently provides better quality inputs at lower price due to its specialization.

Secondly,the firms often outsource and relocate their manufacturing plants in the countries where the labor is very cheap to decrease the cost of production such as China where all the major companies such as Apple manufacture their products as the wages of labor in China is much cheaper at just $0.06 per hour versus in the US at $21.60 per hour.It not only increases unemployment in the country but also increases inequality and job loss for many workers in the US while the workers in China are exploited but they dont enjoy any rights to negotiate for better pay.