World Trade

Issue

   World trade causes two major problems in the global economy: developed markets become too dependent upon foreign goods/services, and emerging markets become artificially inflated due to large export surpluses.

Solution

   To correct the situation, the international community should restrict world trade so that countries may become more independent and self-reliant in themselves. In other words, the United Nations should require every nation to build, manufacture, and develop within their borders rather than rely on others for those goods and services.

   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 endangered lives. It would have been better if the vaccine was mass-produced in every country once it was determined that it was effective against the virus.

   The biggest hurdle for nations to become self-reliant is financial assistance. Funding will be necessary to encourage foreign companies to expand their businesses into local markets. For example, a semiconductor company may not have enough capital to construct a multibillion plant in every nation, so the local government will need to provide the financial assistance to make that effort possible.

   The timeframe for this global effort to achieve self-reliance may be 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 the various business deals and arrangements regarding the supply chain itself. Cooperation is needed here between businesses and governments alike to ensure success of the multi-year effort.

   Restricting world trade to this degree 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 become dependent upon foreign goods (or lose jobs through outsourcing), and emerging markets wouldn't be artificially stimulated through excessive exporting.

   World trade is the cause of these problems. If the United Nations passed a resolution that prevented 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.