Take a minute and look around. You might be surprised to discover how many of the everyday items in your life are made overseas. Your shirt might be made in China. Perhaps ZAMBIAN OPEN UNIVERSITY SCHOOL OF HUMANITIES AND SOCIAL SCIENCES BARCHELORS DEGREE IN PUBLIC ADMINISTRATION Computer No; 21330184 Name: Mwinde Mweemba Hamalambo Course: DS 9 Lecturer: Dr. J. Chulu Assignment No: Two (2) Due date: 29/04/2016 Cell No: 0977 796 817/ 0967 973 909 Postal Address: P.O. Box 32459, Lusaka. Question: How has the growth of international trade contributed to the status of environment in less developed countries
your stereo was assembled in Japan. The watch you're wearing could be from Switzerland. And yes, the shoes that you are sporting might have been assembled in the United States. The importing and exporting of goods is big business in today's global economy. When goods are produced in one country and sold in another, international trade occurs. It is so common to find items produced worldwide that people rarely even think about it. Not too long ago, countries consumed goods predominately produced within their borders. As transportation has become increasingly less expensive and telecommunications have improved, international trade has flourished. In general, international trade allows countries to focus on the industries in which they can be most productive and efficient. In this way, trade often raises the standard of living of both producers and consumers. Regardless, International trade also has a dark side, (Sparknotes; 2016). I Will expound more on that point in the essay. Heakal states that “International trade is 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. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you and I have to pay to buy the tennis or soccer shoes at our local malls. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewellery, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments, (ibid).
Advantages and Disadvantages of International Trade; According to (Economic Concepts 2015) stipulates that; Advantages: The main advantages of international trade to a country are as follows: (i) Economy in the Use of Productive Resources: Each country tries to produce those goods in which it is best suited. As the
- Summer '19
- International Trade, World Trade Organization