Trade allows countries to use national resources more efficiently and enables in

Question

Trade allows countries to use national resources more efficiently and enables industries and workers to be more productive. Trade may even allow countries to achieve higher living standards and keep the cost of many everyday products low. Without international trade, most nations would be unable to feed, clothe, and house their citizens at current levels. In fact, some types of food would become unavailable, or obtainable only at very high prices. For example, in Brazil, where coffee beans and sugar cane are readily available, prices on these items would remain low. However, coffee and sugar could become luxury items in countries such as Canada.

For this discussion activity, respond to the following prompts:

Choose one item that is internationally traded (other than the example presented) and hypothesize what would happen if this item were no longer internationally traded.

Identify who has this product, describe how it is currently used, what its current benefit is, and what happens if it is now unavailable.

Be creative with the product you select; it does not have to be an everyday, common product! (300 Words Minimum)

Explanation / Answer

Lets consider one of very essential product that is in use in almost every sphere of life and it is crude oil.

It is well known that oil is not available at every part of earth. Some regions have great resource of oil which get exported to all over the world. Mainly OPEC countries are in control of supplying oil to all over the world. However there are some other countries also who are finding ways to produce shale gas as substitute of oil but oil still has its important and vital place.

Although it is traded internationally and is controlled through agreggements like cartel and multitrade agreemenets yet the prices are varied in different regions because of inavailablity of it in other regions.

If it has to be supposed that international trade would have not taken place then it would be avialable perhaps at no cost of negative price in OPEC countries and other countries would be then suffering with low standard of living as oil is require to improve industrialization and all sphere of lives. Other countries would also be finding ways to find substitutes like shale gas and solar energy but that would again be limited to the avialability of solar and thermal energy in these countries and also avilable funds to contribute to high research and development and implementation of new substitutes.

Currently alothough the price varied greatly but it is in use everywhere and has benefitted all economies be it developed or developing or underdevelopment not only in industrilization but in normal living of lives as well.

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