Question

In a sound conclusion, express what could be your strong recommendation to your congressperson representative to improve the benefits for international trade within each region included in this Research, and also, what should be done to reduce or eliminate the disadvantages or detriments for those affected societies.

Answer 1

Steps to be taken to improve the benefits of International Trade in the Region -:

1. Investment should be done on R and D activities to make the region an innovative competitor in the international market.
2. Measures to adjust exchange rate (depreciation to a limit) in order to increase revenues from international trade. However, depreciation would help only if the product's demand is more elastic otherwise it could bring negative results. So elasticity is a crucial aspect to be considered.
3. To work on specialisation of the good exported.
4. To work on cost effective and cost effiecient technologies to achieve economies of scale.
5. Search for new target markets.
6. Investment in Infrastructure Development to create state of art Infra which can give impetus to production and hence reap benefits from international Trade.
7. Provide export subsidies to sellers to promote exports.

Steps to be taken to reduce the disadvantages of those societies which have been affected by International Trade -:

1. Provide Subsidies to domestic players who are suffering due to foreign players . This will help them to lower their product price and compete with the foreign competitors.
2. Impose tariffs on foreign products of those countries who resort to dumping (i.e charging a very low price to penetrate the market) to bring their prices at par with the domestic sellers.
3. Keep a mandatory clause for foreign companies to employ domestic labour and use domestic raw material to an extent which would not adversely impact the domestic employment.
4. Set an admissible minimum wage for employees to protect them from exploitation.