International Trade Essay Example
International Trade Project 1. Describe the benefits and disadvantages of specialisation at regional and national levels. Economics is about the production, distribution and consumption of goods. A key decision facing workers, firms and nations is what goods to produce. The economic concept of specialisation helps answer this question. Under specialisation, economic actors concentrate their skills on tasks at which they are the most skilled. For the same reasons entire countries have specialized in the production of particular goods and services and trade internationally. Benefits | Disadvantages | * Countries can get goods and services that they don’t have or cannot produce. For example, Japan has specialized in technology providing the world with 3D televisions and computers that are controlled by the owner’s eyes where as Germany has specialised in producing cars. | * A disadvantage would be that large businesses would move from countries with high costs to developing countries to produce at much lower costs in both resources and labour nut also taking control of it by threatening to move elsewhere. In other words, the business will be in control of the country. | * Countries can obtain goods and services at a cheaper price than producing it themselves. For example, counties such as Iceland can grow fruits and vegetables but only in very expensive and costly greenhouses because of the cold climate. However, they can import these fruits and vegetables and save themselves a huge amount of money. | * Because businesses are always moving to cheaper places, this is affecting the developed countries by increasing it unemployment rate. Also, it is polluting the world by constant transportation across borders and changing the global climate. | * Another advantage of international trade would be taking advantage of cheap labour from other countries. The perfect example would be China because it has both cheap labour and cheap