World Trade

Issue

   World trade causes two major problems: (1) developed markets become dependent upon foreign goods and services that may affect their international policy, and (2) emerging markets are artificially inflated due to their large export surpluses. Both should be addressed by the international community or the situation will continue to be a problem for the global economy.

Solution

   Rather than tariffs which are ineffective to solve these problems, a better solution would be to restrict world trade enough to allow nations to become more independent and self-reliant in themselves. In that every nation is required to build, manufacture, and develop within their borders rather than rely on other countries for those goods/services. Only natural resources would be permitted between nations.

   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, which only endangered the lives of their people. It would have been better if the vaccine was produced in every nation once the formula was determined to be effective against the virus. The same applies for other goods/services, it would be better if every nation handled their own situation rather than rely on others.

   The biggest hurdle in accomplishing this global effort is financial assistance. Nations will need to provide the monetary funds necessary to encourage foreign companies to expand their businesses in their local markets. For example, a chip manufacturer may not have enough capital to construct a semiconductor plant in every nation, so the local government will need to provide the funds necessary to make the effort possible. Either by encouraging other businesses to get involved, or through venture capitalists, or by federal grants/loans. By providing effective financing, every nation will be able to manufacture their own semiconductors for themselves. Same for other goods/services until every nation becomes independent from other countries.

   This global effort will take some time however. Perhaps, 5-10 years for large economies, and 10-15 years for smaller-sized nations. The first year alone will consist primarily of the planning and preparation necessary for companies to make various business deals and arrangements with each other regarding their supply chain. Supervisory economic teams will need to manage and identify problem areas as well as coordinate funding or establish connections to facilitate other needs. Cooperation is needed here between businesses and governments to ensure success.

   Ending world trade except for natural resources will enable nations to "live within their means" while maintaining manageable growth that is sustainable in the long term. The result is that developed markets wouldn't be dependent upon foreign goods/services, and emerging markets wouldn't be artificially stimulated through excessive exporting.

   World trade is the cause of these problems. If the effort for greater self-reliance was required for all nations by the international community, the world 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.