When you head to your favorite store in the city, you may not realize that the purchases you make affect communities far from where you live. If you buy food, clothes, books and toys that are not made in your area, you benefit not only the store that sells them, but also the corresponding companies that produce the goods you use every day. For decades, our relationships with foreign nations have shaped the way people here do business, however, in recent times the call to support local farmers and manufacturers has grown stronger. As a consumer, it’s good to know the ins and outs of international trade as they affect you, your community, and the country.
Does trade with other nations harm or hinder the national economy? The novice student of international relations will know which countries are doing well importing and exporting from the Americas, while domestic workers can charge that foreign industries take jobs away. There are pros and cons to the global industry, some of which are detailed here.
Advantages of international trade
- The trade may offer goods and services that are not readily available through national or local distributors. There are certain plants, products and resources indigenous to foreign countries that we may not be able to produce here. Even if possible, product quality may be better on imports brought into the States. While it’s nice to enjoy wines grown in California and Virginia, for example, some grape varieties grow better in Italy and France, so if you want them, you’ll need to connect overseas.
- Some goods imported from abroad may have a better price in the long run. Even with shipping and transportation costs, some products can be ordered at affordable prices, depending on what you want. If that particular manufacturer is able to create massive quantities in a reasonable amount of time, domestic entrepreneurs stand to benefit more.
- Business connections can increase awareness and interest in American products. The more companies deal with strangers, the lines of communication will be open both to sell products and to buy.
Cons of international trade
- Perhaps the biggest hurdle to overcome, speaking of lines of communication, is the language barrier. When it comes to distributors in countries where English is not the primary language, one can be frustrated by such obstacles. This, in turn, could lead to problems with delivery and ordering.
- Natural disasters and international conflicts can cause delays and failures in supply chains. Retailers that previously bought coffee from Haiti and produce from Japan likely had to reorganize their inventories until both countries are fully operational again.
- As briefly mentioned above, domestic employment also influences trade. Jobs may not be lost entirely in other countries, but many workers may find that they need to change their lives to adapt to changes in the economy.
One can see both sides of international trade: the benefits and the challenges. How you make global business relationships work for me depends on what you need, where your market is, and how you can overcome the obstacles that threaten your business.
