Negative/Positive Sides of Trading

Negative/Positive Sides of Trading

Positive Sides of Trading

tradingFirstly, benefits from international trade have both, foreign and domestic countries and its people. It actually, helps in reducing poverty, which is one of the greatest problems of modern time and the world. China is probably the best example for that. after its newest reforms and politics, it experienced a high growth in GDP in only thirteen years (from 2000 to 2013).

Secondly, it gives and creates amazing opportunities for the companies to get into the markets, which are the largest in the world. Brazil should be mentioned when talking about international trade and the big opportunities, which it was given after its enrollment in the global trading markets. Brazil is one of those countries which has a strong and developed agriculture sector, but only after it expanded to the global market. They have become the largest beef and soy exporter in the world.

It allows companies and businesses in third world countries or just developing countries to become a part of global production and supply chains. Nowadays, it is common for European companies and businesses to be the source for data processing and for example, customer service for Asian and African countries. Because of the development of the telecommunications, the IT sector, and the Internet, it is easier to transfer these kinds of service jobs to less developed countries. Less developed and industrialized countries because of that have a chance to enter the worldwide markets. Worldwide trade can lead to capital flow too, like Indonesia, for example.

Negative Sides of Trading

Negative sides are probably cheaper working force and resources in countries that will export goods and because of that, domestic smaller companies will have trouble staying on the market. It is a known fact that more and more people are living in poverty, which is a sign of less buying power and of course cheaper options.

However, global trade gives the opportunity of having products from every single part of the world and that is one of the beauty of it!