In some countries, it is now possible for people to buy products made in other countries. To what extent do the benefits of this development outweigh the problem?
Globalised trade happens in many countries and the exchange of commodities between countries becomes more common than ever before. This is concerned by many that whether this type of business model has negative effort or not. Fortunately, it has advantages outweigh its disadvantages.
Importing goods could be a serious issue and threat to local business providers. In some countries, especially developing countries such as China, they can decrease the cost of products dramatically because they are able to use very cheap labours. As result, they can achieve extremely low price and earn the market share immediately. For example, the T-shirt industry in the USA was totally crashed by Chinese suppliers.
However, for some countries, international business model can fit the gap between clients and products. These countries are highly unlikely to manufacture such goods because they may not have the resources and they may not have the technologies. For instance, without Huawei, a technology company, some poor countries such as Africa will not have the Internet connection.
In addition, customers may gain benefits as well, because they could have more choices when they are shopping. More specific, based on the variety of budget, clients still are able to find appropriate products, which is able to reduce the cost of living. For example, in Woolworth, a famous supermarket in Australia, people have many options to chose the right commodities.
In conclusion, international trading can be a threat to the local business, but it still has considerable benefits for the public. Therefore, this business model’s benefits far outweigh its drawbacks.
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it has advantages outweigh its disadvantages.
it has advantages which outweigh its disadvantages.
its advantages outweigh its disadvantages.
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