Tuesday, October 14, 2014

International Trade

Nobody is perfect. Everyone needs help and relies on others.
Let's zoom out. What if a country is considered as a person? Does the rule of dependence still apply? Yes. Countries still need help from each other. A form of aid between countries is international trade - the exchange of goods and services between countries. "This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events." (Investopedia)  International trade seems to be an ideal way for the whole world to develop.

However, there are certain limits of international trade. According to Preservearticles, there are 12 problems:
1. Distance
2. Different languages
3. Difficult in transportation and communication
4. Risk in transit
5. Lack of information about foreign businessmen
6. Import and export restriction
7. Documentation
8. Study of foreign markets
9. Frequent market changes
10.  Investment for long period
12. Intense competition
Those are just limits. But what makes international trade an issue? CHILD LABOR. World Trade Organization (WTO) does not prohibit child labor to produce good. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. However, according to  Global Exchange, WTO has some disadvantages, such as:
1. The WTO is basically undemocratic.
2. WTO will not make us safer due to free trade.
3. WTO will tramples labor and human rights.
4. WTO also brings disadvantages to undeveloped countries, since every countries are equal.

So, how can we make it better?  To be honest, there is no perfect solution. If WTO is eliminated, countries closed their trading, world economy collapse. If WTO continues to exist, free trade will give countries with oil a lot of advantages. There is always a cost to something. There is NO ABSOLUTE solution...

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