Disadvantages of International Trade

In: Business and Management

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Disadvantages of International Trade :
The Global market has made it easy to buy and sell international goods. While this has benefits, it also presents a problem. Such trade can cause countries to be prosperous for a short time, but leads to economic exploitation, loss of cultural identity, and even physical harm. Support of Non-Democratic Systems Great hardship can be caused when people make poor decisions about land use or surplus production for export and do not take the general population’s welfare into consideration. For example: Landowners in Nicaragua and El Salvador want farmers to grow coffee beans because it is a very profitable cash crop, however, the farmers would like to use the land to grow more food for their families. The farmer’s wishes are ignored because they do not actually own the land. Cultural Identity Issues Culture is a major export in the world. It displays and promotes values and lifestyles worldwide. The "culture consumer" in other countries is sometimes overwhelmed by American ideas. Products also carry cultural ideas and messages. There are values of the culture the make the product. For example: Coca-Cola, McDonalds, Nike, and Microsoft all sell products that symbolize American values and symbolize and reflect American corporate culture. Social Welfare Issues: Maintaining safety standards, minimum wages, worker’s compensation and Health benefits are all social welfare issues that cost business money. If a running shoe is made in a country where these issues are not met than the shoe can be sold for less in Canada. The down side to this is that substandard safety conditions cause death and injury in the workplace.Environmental Issues: In Canada, businesses are urged by the government and environmental groups through laws and regulations to keep our air, land and water clean. This is a…...

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