In this day and age, the expansion of international trade and an affinity to globalization have brought the world closer together, especially in the marketplace. This means if you open a company, this company can quickly expand to and enter many markets around the world. When this happens, it is natural for local small businesses to be forced to shutdown. In my opinion, this natural phenomenon will cause a rise in unemployment in the local markets. Below is my solution to this problem.
It is important to acknowledge that nowadays, no country can be its own “island”. This means an opportunity for a company in one country could cause problems for one or more companies in the receiving country. For example, a Malaysian food company sells lots of durians to Vietnam because it is cheaper to grow durians in Malaysia. When this happens, many durian farmers in Vietnam will lose businesses to the Malaysian durian company. Of course, this means many local durian farmers and workers will lose their jobs. This is a natural outcome of open trade and globalization.
With this in mind, the local country government can provide solutions to this unemployment problem. One solution is to charge a high tax, such as 50% tax on imports of Malaysian durians. In fact, the local government could increase taxes for all other products and services that are coming in from other countries, not just Malaysia. Tax increase is a great way to stop foreign imports.
In conclusion, international trade is a good thing, but actually, it can also cause problems, such as rising local unemployment. However, local government has many options to solve this problem. One solution is to increase taxes for foreign imports.