1） Submit a1 page paper answering the questions, Should we continue to strike Global Trade deals with Foreign Countries? Should we trade with ALL Countries regardless of their stance on Human Rights? Double spaced.
2） Read the Power Point on Global Trade on Blackboard. After reading, re-read the reasons for and against Global Trade. Submit a written paper 2 pages whereby you take a position for or against Global Trade.
Back up your position with supporting evidence
Position on Global Trade
Although global trade exhibits some challenges, it has made both the imports and exports of good and services easier among nations.. Global trade plays a critical role, especially when some resources are abundant in one region and scarce in another region. Based on the principle of comparative advantage, some countries can produce a product or service at a cheaper price; hence, enabling another country to enjoy an opportunity cost after importing such resources. Countries make agreements that favor their respective positions, while protecting the interests of citizens. Although global trade can favor the multinational corporations, such trade collaborations are benefitial because they promote quality products, enhance constructive handling of disputes, and stimulateeconomic growth.
Ensuring quality production of goods and services is one of the benefits of global trade. The trade has significantly intensified competition among producers, and the consumers have a choice among various substitutes. Local producers aiming for domestic market could just provideproducts without an emphasis on the quality, especially if they meetthe needs of the people. Hence, global traders has further focused on value addition to enhance quality and competition. While a country may be endowed with raw materials, the same nation might not have the capacity to add value and sell at a profit. For instance, a country could be having iron ore, but lacks the machinery to transform it to steel. However, another country can import the ore and transform it to the desired design or the same country import the machinery and process the ore.
Global trade has reduced the instances and intensity of disputes that would ensue without the instituted regulations. Since global trade was dominantly bilateral. some disputes would arise, especially when a country felt shortchanged after a trading partner fails to meet the end of the bargain. After the IMF and WTO identified that such isputes could escalate and result in wars, the organizations developed guidelines for global trades.. Overall, disputes arising from global trade can be avoided and amicably resolved in the case they happen.
Global trade has facilitated free trade and enhanced economic growth. If a certain product is abundant in a given country, the local market would be characterized by a high supply and low demand. Hence, , the price of the product would fall affecting the producer significantly. However, global trade would encourage export to another region in which the same product is not produced competitively.. Overall, global market offers more opportunities in which manufacturers can sell their products at comparatively higher prices.
Under global trade, multinational corporations can have a large market capitalization, which is a competitive advantage over small companies. Hence, such corporations can easily manipulate policy changes to benefit from economies of scale since they can produce in bulk. Besides, they can afford research and development functions within their structures, meaning that they can identify ways to penetrate the market by adding more value and developing new products, as well as reducing costs of production. However since such concepts can eventually be replicated by other firms, global trade offers more benefits than setbacks.
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