The development of export and import activities amoung nations has long sparked heated debate. While it is argued to adversely reverberate through local industries, some are of the opinion that unlimited cross-border trade is of paramount importance to economic growth. This essay will discuss both views and argue for the latter.
On the one hand, it is understand why the free international movement of goods is believed to hurt local economies. The fact that global commodities can be imported easily is likely to pose a threat to local companies, most of which lack experience, and qualified tools, machinenaries, as well as human resources. They are struggling with fierce competition from other local businesses and competition from global ventures may overwhelm them and drive them out of the field. A case in point is Nam Dinh’s textile industry, which used to bring Nam Dinh city’s name to the map for its huge textile factories with thousands of employees. In the last two years, several of these factories have closed down due to a significant fall in demands stemming from the growing popularity of foreign garments.
On the flip side, the development of international commerce is likely to act as a catalyst for economic growth. The increasing competition that local companies are now facing can be considered a stepping stone towards more productive manufacturing processes, better trained staff, and improved product quality. Once all of these have been achieved, it will not be long until local products are in turn shipped overseas. These exports will undoubtedly contribute to the local economy. Furthermore, with an increasing amount of imports, a country might be considered a potential market for a particular item, leading to producers worldwide of that product entering the local market and establishing factories in that country itself. A remarkable increase in employment opportunities, thereby considerable contribution to that country’s GDP, is then foreseeable.
Overall, unlimited import and export activities, despite their drawbacks, can be effectively taken advantage of to boost economies of coutries all over the world.