How can this 5 paragraph essay
How can this 5 paragraph essay be written better?
“International trade plays a big role in today’s economy as itdid the last couple decades. There are many advantages anddisadvantages of international trade. With the rapid changes in thetechnology field, the market had to adapt. Some officials say thereis still some catch up to do with international laws associatedwith the technology trade.
In the many advantages with international trade, I feel pricestability is a huge factor. It equalizes the price of goodsthroughout the world. It also tries to stabilize the price so itdoesn’t go up or down. Lets take the trade of Micro Chips forexample. Micro Chips are used in all of technology from CellPhones, Desktops, and Televisions. Korea is the biggest Micro Chipmanufacturer in the world. You’ve probably heard of their mostprofitable company called Samsung. Samsung is able to produce sucha large amount of Micro Chip product, that it drives the price downwhich forces other companies to try and match that price as bestthey can which in turn gives a fair market value for theconsumers.
Another advantage to international trade is the increase inefficiency. International competition forces countries to producehigher quality goods at the lowest price point possible to stayrelevant. For example, you see poor efficiency come from Chinabecause they only care about having the lowest cost but not thegreatest quality. Samsung being the company it is, produces thebest quality at the best price point in the market. One of thereasons for this is the amount of resources they put into theresearch and development sector. The better Samsung does quarterly,the more resources they put into research and development, the morethe product efficiency grows.
Looking at the other side of the coin, there are manydisadvantages to international trade. One being the support oflocal industries. An example of this would be Apple. Apple has theknowledge and money to produce their own Micro Chips, but due toSamsung’s efficiency, Apple outsources their Micro Chips fromSamsung to make Apple products affordable. Beneath every Appleproduct is a bunch of Samsung Micro Chips.
Not many people know this when they try and support productsmade in their country. Sadly, every big corporation outsources toKorea and China to drive their product prices down to compete withthe market. The second disadvantage of international trade wouldhave to be labor laws. Apple, being the second biggest cell phonemanufacturer out sources their phones to China which means they outsource their employees to China. China has drastically differentlabor laws than to the US. In China, they are not allowed to have aUnion. The average hourly labor cost in China is ~$0.06 whereas inthe US the average is ~$21.60 and there is nothing the Chineseworkers can do about it because it is not a democracy over there.”
International trade is the backbone of the world economy and itdepends upon labor laws and is governed by various regulationswhich are continuously changing as the world is becoming aglobalized market.There are various advantages and disadvantagesassociated with international trade which are as follows-
The advantages of international trade
First, it stablizes prices all over the world.As the economiesopen themselves and engage in international trade,they have to setthe prices of the products equal to the global prevailing rateotherwise people may discard it.It increases competition andstandardization of products while also lowering the cost ofproduction and setting a unifom price all over the world.ExampleSamsung which produces micro chips and enjoys economies of scalewhich lowers the cost of chips all over the world and sets auniform price.
Second,international trade increases efficiency as the countriesengage in manufacturing of those goods which they can produce moreeffectively or have a comparative advantage on.This increasesspecialization and increases efficiency as the country gets moreproductive in producing a particular good,increasing its qualityand value at a lower cost.This increases the revenue and the firmscan put in extra revenue in research and development to furthurincrease the efficiency.
The disadvantages of International Trade
Firstly,with international trade and increase incompetition,every manufacturer looks to decrease their cost ofproduction and for this,they outsource their product from differentcountries where the input is having more quality at a much lowerprice which hurts the domestic industry the most.Example Appleoutsourcing chips from Samsung for their products as samsungefficiently provides better quality inputs at lower price due toits specialization.
Secondly,the firms often outsource and relocate theirmanufacturing plants in the countries where the labor is very cheapto decrease the cost of production such as China where all themajor companies such as Apple manufacture their products as thewages of labor in China is much cheaper at just $0.06 per hourversus in the US at $21.60 per hour.It not only increasesunemployment in the country but also increases inequality and jobloss for many workers in the US while the workers in China areexploited but they dont enjoy any rights to negotiate for betterpay.