There is a controversial discussion among some people that states whether trading and communicating with foreign nations are beneficial or harmful because of losing their countries’ personality. Many countries in modern era have shown that openning the borders to other countries in order to begin a business and communication caused their economies to grow dramatically. Thus, I completely agree that being in touch with foreign nations, in the cases of economic relationship and communication, is a positive approach. In the following, I am going to elaborate on the reasons behind my agreement.
To begin with, the comparative advantage in goods production must determine what is better for a country to produce. As a result of accessibility and abundant of resources and human capital, the cost of goods production is different among countries; therefore, the nations must concentrate on producing the products that are less costly for them and instead import the high-cost products from the countries that are able to produce them with lower expenditures. For example, Iran, as a country that accesses to a great capacity of crude oil, must invest on the processes that modify and transform the oil to wealthier goods such as petrol and then export it to the countries in which petrol production is a costly process.
Futhermore, communication with other countries creates a larger demand for the domestic production to sell. A country’s economy cannot become greater and stronger unless it faces higher demand for its product to sell. If an economy does not have enough potential to sell products, its industry would turn down gradually. As a result, providing more markets and areas for a nation’s economy is highly neccessary to present its products and make money. For instance, the Fenes’ industry, which is not relatively large to other industries worldwide, has been selling a significant amount of Nokia cell phones by only making economic communication with other countries around the world.
To conclude, not only does a comparative advantage in the production of goods benefit a country, but also a larger demand for domestic produced items strengthens its economy. Due to the aformentioned reasons, it can be considered that trading and communication with other countries across the world is beneficial for every nation.