Question

the key economic success is autonomy a countryshould not rely so much on international trade , but rather focus on local production and creating employment locally as is done in social and community sytem . argue for or against this assertion and supply example to substaite your arguement

Answer 1

International trade plays an important role in the economic success of a country but the the role of the state remains paramount as the means of resource mobilisation, particularly to ensure overall development, employment creation and equitable distribution of opportunities. So, for economic success a country should not rely too much on international trade but rather focus on local production and creating employment locally as is done in social and community sytem. The state is the main force coordinating all economic and non-economic actors, and provides the direction for capabilities building through a purposive policy framework of coordination and learning.

Success stories such as that of the East Asian economies, and now China and (to a much lesser extent) India are touted as examples of state-led developmentalism. These countries and their experiences conform to the view that social capital plays an important role in technological change.Technological change was pioneered through state-led actions, in which public sector enterprises played a critical role, not only in promoting a focus on product and process development, but also as hubs of creativity. As in the case of several East Asian economies and now China and India, state-led enterprises bred entrepreneurial spin-offs, led to the creation of skilled manpower, prompted closer industry-university alliances and also helped to create employment for a large number of people. It has also been suggested that job growth should be based on technological development, thereby generating high-quality, and sustainable jobs.

When a country relies too much on international trade for its success it has to face many problems such as in order to boost exports they had to make trade easier which can be done by reducing tariffs and other blocks to imports. That reduces jobs in domestic industries that can't compete on a global scale. It also leads to job outsourcing. That's when companies relocate call centers, technology offices and manufacturing. They choose countries with a lower cost of living. This means the underdeveloped countries have to depend upon the developed ones for their economic development. Such reliance often leads to economic exploitation. Apart from this,excessive exports may exhaust the natural resources of a country in a shorter span of time than it would have been otherwise. This will cause economic downfall of the country in the long run. Also, international trade often encourages subjugation and slavery. It impairs economic independence which endangers political dependence.

So, it is very important for a country to focus on local production and creating employment locally to gain success on economic front rather than relying on international trade on large extent.