Please read the question and the answer below, state whether you agree or disagree with the answer and elaborate. Cite at least one reference to support your response.

NOTE: A reference list is very important.

QUESTION:

In no more than 250 - 300 words, analyze whether national governments should intervene in the International Trade markets.

ANSWER:

According to Heakal (2022), international trade is the purchase and sale of goods and services by companies in different countries. On the global market, commodities such as consumer products, raw materials, food, and machinery are all purchased and sold. I think that national governments should get involved in international trade because it gives people access to products and services that might not otherwise be accessible domestically. International trade has also increased competition in the trade market. This ultimately leads to more competitive pricing, which lowers the cost of the final product for the consumer.

On contrary, some may argue that international trade may put smaller nations at a disadvantage on the world stage. It is argued that more manufactured items are imported at relatively higher prices as a result of the rising demand for them. As a result, the terms of trade continue to be unfavorable for developing nations.

While this may be factual, when nations trade with one another, they virtually always benefit. The level of living rises in both nations when a company or an individual purchases a good or a service made more inexpensively overseas. Consumers and businesses can benefit from purchasing goods from other countries for other reasons as well. For example, the product might satisfy their needs more effectively than comparable domestic options or it might not be offered locally. In any case, the foreign producer also reaps rewards by selling more than it might in its own market and by earning foreign exchange (currency) that it or others in the nation can use to buy goods created elsewhere.

References

Heakal, R. (2022, September 17).International (Global) Trade: Definition, Benefits, Criticism. Investopedia. https://www.investopedia.com/insights/what-is-international-trade/

Mcdonald, B. (n.d.).INTERNATIONAL TRADE: COMMERCE AMONG NATIONS. International Monetary Fund. https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Trade