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Location: Unit VI - Is International Trade and Finance good or bad for a country?
Discussion: Is International trade and Finance good or bad for a country?
Keyword tags:
Interational Trade and Finance
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 howardlin |
Is International trade and Finance good or bad for a country?
Apr 28 2008, 6:35 AM EDT I looked around and didn't really find this chaper's student thought forum so i decided to start one, Is international trade and finance good or bad for a certain country? Will two countries ever be better off not trading at all? Do you find this valuable? |
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jenniferchoi jenniferchoi |
RE: Is International trade and Finance good or bad for a country?
Apr 28 2008, 9:19 AM EDT I think international trade is very important for the world economy. Through specialization and trade, the whole world can be better off. As we learned in class, using comparative advantage countries can decide which one to produce which product. It’s beneficial for a country to specialize and trade even if that person is more productive than the possible trading partners in everything. If there are relative cost differences in the production process, people should specialize. Do you find this valuable? |
 ChrisFishSeah |
RE: Is International trade and Finance good or bad for a country?
Apr 29 2008, 7:53 AM EDT Assuming that every country is honest, yes, international trade is extremely beneficial to national economies. Refer to the extending of the "trade possibilities curve" - that is, countries may specialize in their own product and end up producing more together than they would have individually. This is the ideal economic view. However, there are many instances of exploitation in the real world where more powerful countries take advantage of poorer ones. Good examples include the slave wage factories run in Mexico, China, Indonesia, and India just to name a few. These activities may count as international trade but they aren't necessarily good. Do you find this valuable? |
