What are the advantages and disadvantages of international trade?

Answer 1

Advantages of Trades Unions.

1. Increase wages for its members.

Industries with trade unions tend to have higher wages than non-unionised industries.

2. Counterbalance Monopsonies.

In the face of Monopsony employers, Trades Unions can increase wages and increase employment. Monopsony employers are those who have market power in setting wages and employing workers. Traditionally, monopsonies occur when there is only 1 firm in a town, or type of employment. However, in modern economies, many employers have a degree of market power (monopsony).

3. Represent Workers

Trades Unions can also protect workers from exploitation, and help to uphold health and safety legislation. Trades unions can give representation to workers facing legal action.

4. Productivity deals.

Trades Unions can help to negotiate productivity deals. This means they help the firm to increase output; this enables the firm to be able to afford higher wages. Trades unions can be important for implementing new working practices which improve productivity.

5. Important for Service Sector.

Modern economies have seen a fall in trade union power. This is because of a decline in manufacturing and rise in service sector employment. Service sector jobs tend to more likely to be part time and temporary; unions are needed to protect workers in these kind of jobs.

Problems of Trades Unions.

1. Create Unemployment.

If labour markets are competitive, higher wages will cause unemployment. Trades unions can cause wages to go above equilibrium through the threat of strikes e.t.c. However when the wage is above the equilibrium it will cause a fall in employment.

2. Ignore non Members

Trades unions only consider the needs of its members, they often ignore the plight of those excluded from the labour markets, e.g. the unemployed.

3. Lost Productivity.

If unions go on strike and work unproductively (work to rule) it can lead to lost sales and output. Therefore their company may go out of business and be unable to employ workers at all.

4. Wage Inflation.

Answer 2

Well, without trade, you would have to find/produce/beg for everything you need or want all by yourself. It is very difficult to live without at least some trading.

As for disadvantages, well this is more complex. There are many possible drawbacks, some of them are generic while others are specific to money based trades.

One of the basic disadvantages is that when trading, you need to somehow attribute a value to things but there is rarely an unniversal unambiguous value to an object or service. For instance, if you make a fine painting, I might be willing to buy it for anything up to 1000$ (or 500kg of potatoes) and you might be willing to sell it for anything above 600$ (or some repairs of your roof). The actual price at which the exchange will occur will probably be determined by whoever is better at talking/lying/crying which can be quite 'unfair'.

Answer 3

The advantages of working in international relations include learning to evaluate the current political issues and possible future political issues in addition to understanding foreign policy. There aren't any real disadvantages concerning international relations other than the amount of travel required.

Answer 4

If you plant parrots and get potatoes, then you are planting it in the wrong soil.

But if you get CARROTS from parrots then you have put just the right amount of corn.

Remember not to put to much ant-rid as it will scare away all of the leaves from the top.

Answer 5

Advantages; lower prices, more choice, allows international competition. Disadvantages; loss of jobs and skills, increase in harmful imports.