I need a discussion post on the following please If the nations of the world wer

Question

I need a discussion post on the following please

If the nations of the world were to suddenly cut off all trade with one another, what products might you no longer be able to obtain in your country? How would this affect businesses and the economy? Choose one other country and identify the products it would need to do without.?

Please have complete and well thought out responses. I am looking for original input so please share your thoughts and experiences so we can all learn from them. Please make sure that you back up the posts with factual information from the book, online academic websites, work/life experiences, etc.

Explanation / Answer

Effects of International Trade Cutoff

Trade is the basis of an economies growth and also ensures that consumers get what they need at their disposal. It ensures that all the essential goods are available to the consumers. If trade I cutoff among the world nations U.S.Aas nation will not be able to get the following products: machinery, vehicles, technical equipment, furniture, electronic equipment, plastics, precious metals, organic chemicals, engines, stones, plaster, signs and food waste,(Manova, 2013). This will have adverse effect on the economy as it will lead to an increase in the prices of the domestically produced products. The increase in the prices will lower the ability of the consumer to purchase the products, (Melitz, & Ottaviano, 2008). The quality of the products is likely to go down due to lack of competition. As a result of the inability of the consumers to spend the economic growth of the nation is likely to decrease lending to a change in its international position. The rich countries may become poor as the consumers spending power will be reduced while for the poor country the condition is likely to worsen as it may continue to poor and poor to a state where some of the citizens may live in absolute poverty.

To the businesses that depends on the imported products they will automatically close down as they will no longer access the products. The close down of such businesses will lead to unemployment of the employees working there. This cuts down the employees purchasing power which in turn will decrease the economic growth as such people will no longer contribute towards the growth of the nation. Egypt also will be affected if trade is cut down as it will have to do without the following products: sisal, fresh fruits, jute and other textile fibres, commercial crafts, Aluminum, spices, Soda ash, tobacco and dairy products.

References

Manova, K. (2013). Credit constraints, heterogeneous firms, and international trade. The Review of Economic Studies, 80(2), 711-744.

Melitz, M. J., & Ottaviano, G. I. (2008). Market size, trade, and productivity. The review of economic studies, 75(1), 295-316.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.