Q:

What are the advantages and disadvantages of international trade?

A:

International trade lowers the cost of products through competitive advantages, but it can lead to harm for communities and nations. Workers in developed nations are sometimes replaced by counterpart in developing nations. Work conditions in developing nations can be exploitative.

Different nations have competitive advantages over others. Brazil, Cuba and other nations have conditions that are great for growing sugar, and exporting sugar allows everyone to pay less for it than if all sugar was grown locally. Similarly, other nations have the infrastructure needed to develop faster computer parts, and these nations are able to deliver better products people around the world can use.

However, one of the competitive advantages held by developing nations is low labor costs. Workers in developed nations who need jobs that pay better than their counterparts in other parts of the world are sometimes replaced by foreign workers. This can shrink the middle class in developed nations and cause hardships for people no longer able to find work.

Many manufacturing jobs have moved to developing nations as well, and many of their governments do not enforce strong labor laws. As a result, children are sometimes forced to work, and employers might demand more of their workers than most find ethically acceptable.

Learn More

Related Questions

  • Q:

    What are the advantages and disadvantages of privatization?

    A:

    Privatization is advantageous because it improves efficiency and profitability, prevents political interference and increases competition. According to The Guardian, privatization is disadvantageous because it can create private monopolies and a focus on profits rather than public interest in the delivery of essential services, such as healthcare.

    Full Answer >
    Filed Under:
  • Q:

    What are the advantages and disadvantages of primary data?

    A:

    An advantage is that primary data is information the researcher has collected and worked with personally. It relates directly to that person's research or study. A disadvantage of primary data is that it is expensive to collect the data, and it often takes a long time to process the information.

    Full Answer >
    Filed Under:
  • Q:

    Why is international business important?

    A:

    International business is important because it gives domestic companies access to new markets, potentially increasing sales and profitability. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor.

    Full Answer >
    Filed Under:
  • Q:

    What does the International Virtual Assistant Association do?

    A:

    The International Virtual Assistants Association supports the professional development and education of virtual assistants and educates the public about what virtual assistants do. IVAA provides its members with continuing education, certification, networking opportunities and member benefits. It also offers a request-for-proposal system free to members and allows entities looking to hire a virtual assistant to post jobs and IVAA members to respond.

    Full Answer >
    Filed Under:

Explore