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 their export surpluses.

Solution

   To correct the situation, the international community should restrict world trade to the degree that allows countries to become more independent and self-reliant in themselves. In other words, every nation will be required to build, manufacture, and develop within their borders rather than rely on other nations 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 unnecessarily endangered their 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 achieve greater self-reliance, however, is financial assistance. Funding will be necessary to encourage foreign companies to expand their businesses into domestic markets. For example, a semiconductor manufacturer 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 nations to become more independent may take 5-10 years for large economies, and 10-15 years for smaller-sized nations. The first year alone will primarily consist of the planning and preparation necessary to make the various business deals and arrangements regarding the supply chain. Cooperation is needed here between businesses and governments alike to ensure success of the multi-year effort.

   By restricting world trade, nations will be able to "live within their means" and support themselves 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 prevents 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.