World Trade

Issue

   World trade among nations causes two major issues: (1) the deterioration of developed markets (caused by outsourcing and relocating jobs to countries with cheaper laborers), and (2) the artificial stimulation of emerging markets (by producing a large trade surplus of exporting more than importing).

Solution

   Rather than having world trade or restricted trade via tariffs continue to be a problem, a better solution may be if the international community passed a resolution that required all nations to become self-reliant while attaining moderate growth based on their country's economy.

   In other words, to build, manufacture, and develop as much as possible within one's borders rather than rely upon other nations for those goods/services. Trading among countries would be shut down worldwide to the degree that only natural resources would be permitted between nations.

   The biggest hurdle in accomplishing this effort is financial assistance (through the use of federal grants and loans) that may be necessary to assist foreign companies to expand their businesses into local markets since not every company has the capital to establish themselves in other countries.

   It is also important for nations to become more independent as a matter of national security if an issue or conflict ever arises in the world. For example, during the Covid-19 viral outbreak, many nations had to wait for the vaccine to be produced by a foreign country until they received their own supply. Which is not acceptable especially if a more deadly virus had spread across the world during that time.

   The situation would have been better if the pharmaceutical company was represented worldwide and produced the vaccine within every nation at the same time. The same goes for other goods and services, from computer chips to clothing to support call centers, nations shouldn't be dependent upon others for their needs to prevent the possibility of issues arising between them.

   The effort 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 will consist primarily of the planning and preparation necessary for companies to make numerous business arrangements to handle the supply chain. It will be important for governments and businesses to act together in a more friendly atmosphere rather than relying on one or the other to act on their behalf. Cooperation is needed here to ensure success.

   The value of shutting down world trade is that every nation would be able to "live within their means" while considering moderate economic growth that is sustainable in the long term. This is beneficial in that developed markets wouldn't lose jobs through outsourcing or relocation, while emerging markets wouldn't be artificially stimulated through excessive exporting.

   World trade is the cause of all 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 bubbles/crashes, or be the cause of animosity towards others.