Question

The objective of this assignment is to imagine that a majority of people in your country believe international trade harms their wages and jobs, and that your task is to change their minds. Create an original discussion post by responding to the topic below utilizing the knowledge you accumulate while in this course in a minimum of two paragraphs. You must use proper grammar, spelling, and punctuation. Any outside sources that you use to support your opinions should be appropriately cited within your posting. To begin, click reply below.

Discussion Topic

1. How would you go about educating people about the benefits of trade?
2. What are some of the international trade patterns that you might use to help convince people that it is the best method? Why?
3. How would you explain absolute advantage to help influence people to encourage trade?
4. What are your experiences with trading? What has been successful? What has gone wrong?

Answer 1

International trade is the exchange of goods and services as well as resources between countries and involves greater complexity compared to internal trade.

While some economists and policy makers argue the net benefits of international trade,some others feel that it generates a number of adverse consequences on the welfare of citizens.They can be made aware of the benefits of international trade by providing real life scenarios and providing references to various theories of international trade.

Benefits of international trade are :

• Powerful stimulus to economic efficiency .
• Contributes to economic growth and rising income
• Access to new markets and new materials
• Inflow of foreign direct investment
• Human resource development
• Strengthens bond between nations

The above list is not a conclusive list. International trade benefits the normal consumers in many ways :

1.Creating new jobs that would potentially reduce poverty and augmenting factor incomes.

2. Innovative products at lower prices.

3.Wide choice in products and services.

4. Raises standards of livelihood,etc.

Many goods and services are imported by us because they are simply not produced in our country for various reasons and therefore not available domestically. However,we do imports many things which can be produced domestically. The theories like Mercantilists views of international trade,Theory of Absolute Advantage by Adams Smith, Theory of Comparative Advantage by David Ricardo,Heckscher- Ochlin Theory of trade and New trade theory provides the solutions for this.

Most of us are familiar with online shopping and e-commerce. Even I too have done online shopping. E-commerce and international trade are closely related. The volume of international trade increases via e- commerce.They both together enables a customer to buy a product or service which are not available in ones local area.,enabling to have wider choice of product or service.

These all provides an understanding of how beneficial is international trade .