World Trade

Issue

   World trade causes two major problems: developed markets become too dependent upon importing cheap foreign goods, and emerging markets become artificially inflated due to exporting large surpluses. The international community needs to address this situation or it may continue to be problematic for the global economy.

Solution

   Rather than utilizing tariffs which are ineffective, 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 own 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 is financial assistance. Nations need to provide the funds necessary to encourage foreign companies to expand their businesses into their markets. For example, a chip manufacturer may not have enough capital to construct a billion-dollar semiconductor plant in every nation, so the local government will need to provide the financial assistance to make the effort possible.

   The global effort for every nation to become more self-reliant in themselves 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.

   The eventual restriction of world trade by the international community that requires all nations to be self-reliant will enable countries to "live within their means" while maintaining manageable growth that is sustainable in the long term. The result of this effort will be that developed markets wouldn't be dependent upon foreign goods/services, and emerging markets wouldn't become artificially stimulated through excessive exporting.