World Trade

Issue

   World trade causes two major problems: developed markets become dependent upon foreign goods/outsourcing jobs, and emerging markets become artificially inflated due to export surpluses.

Solution

   Rather than relying on tariffs to balance the situation, a better solution would be for the United Nations to restrict world trade so that nations may become more independent and self-reliant in themselves. In that, every nation will be required to build, manufacture, and develop within their borders rather than rely on other countries for such items.

   An example why this is important was during the Covid-19 viral outbreak. Many nations had to wait for the vaccine to be produced by a foreign country until they were able to receive their own supply that unnecessarily endangered their lives. It would have been better if the vaccine was mass-produced in every nation once it was determined that it was effective against the virus.

   The biggest hurdle in accomplishing this effort for every nation to become self-reliant is financial assistance. Nations will need to provide the necessary funds to encourage foreign companies to expand their businesses into domestic markets. For example, a chip manufacturer may not have enough capital to construct a billion-dollar semiconductor plant within every nation, so the local government will need to provide the financial assistance to make that effort possible.

   However, this proposed United Nations resolution for every nation to become self-reliant will take some time. Perhaps, 5-10 years for large economies, and 10-15 years for smaller-sized nations. The first year alone will consist of the planning and preparation necessary to make various business deals and arrangements regarding manufacturing concerns and supply chain issues. Cooperation is needed here between businesses and governments to ensure success of the multi-year effort.

   Reducing world trade will enable nations to "live within their means" while maintaining manageable growth that is sustainable in the long term. This is beneficial in that developed markets wouldn't be dependent upon foreign goods (or lose jobs through outsourcing), and emerging market economies wouldn't be artificially stimulated through excessive exporting.

   World trade is the cause of these problems. If the United Nations passed a resolution that prevents world trade except for natural resources, the international community would have a more secure global economy that is not subject to the whims of political leaders, economic bubbles/crashes, or be the cause of animosity towards others.