World Trade

Issue

   World trade causes two major problems: (1) developed markets become dependent upon foreign goods and services for their economy, and (2) emerging markets are artificially inflated due to their export surpluses. The international community should address these situations, or the problems may continue for the global economy.

Solution

   Rather than tariffs which are ineffective, a better solution would be for the United Nations to restrict world trade for nations to 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 those 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, which unnecessarily endangered the lives of their people. It would have been better if the vaccine was mass-produced in every nation once it was determined to be effective against the virus.

   The biggest hurdle in accomplishing this effort for worldwide self-reliance is financial assistance. Nations will need to provide the monetary funds necessary to encourage foreign companies to expand their businesses into 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 necessary funds to make the effort possible.

   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 to make various business deals and arrangements regarding manufacturing and supply chain issues. Cooperation is needed here between businesses and governments to ensure success.

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

   If the United Nations required self-reliance for every nation, the world would have a more secure global economy that is not subject to the whims of political leaders, experience economic bubbles/crashes, or be the cause of animosity towards others.