Does Inernational Trade hurt the Economy Essay Example | Topics and Well Written Essays - 500 words

Does Inernational Trade hurt the Economy - Essay Example Opponents and supporters have raised their opinions in numerous election campaigns, interviews and journals. In essence, various studies have been carried out to identify the problems and benefits that accrue from international trade. Japan is one of the countries that have been affected either negatively or positively by this trade. This is because of its diversified trade that depends mainly on trade in the international market. Countries benefit when they trade. When these countries produce different product, they benefit to a greater degree. For the past decade, Japan has benefitted immensely from its interaction with other in the international market. In reference to a study conducted by Flaherty (1999), international trade improves a country’s technology and improves the productivity levels in turn. This has been the case with Japan which has seen the level of technology improve due to raw materials from trade partners and available market for the finished goods in other countries. Flaherty (1999) asserts that the employment available becomes efficient and average incomes increase and the levels of standards of living improve. Statistics indicate that since Japan involved itself with international trade the living conditions for the local citizens have improved tremendously. In addition, since the elimination of the trade barriers as a result of globalization, Japan has witnessed a decrease in in flation and unemployment rates. Needless to say, international trade has caused a decrease in prices of commodities and increased product quality and choice. Increased International trade has triggered an increase in Japan Products. Japan exports of goods and services have highly generated income. For many years, the country had experienced deficits in its trade balance. Increased International trade has reduced the deficit that has been contributed by higher imports and low exports. This has