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Besides, it becomes a great opportunity for all employees when a particular company or business of a country shifts to a different place. For instance, if a certain US company opens its office in Mexico, Mexican workers will get a wonderful job opportunity to earn their living. Consequently, employment ratios, average living standards, and overall economic growth of Mexico will increase. At the same time, increase in demand for company’s products in Mexico will lead to generation of more opportunities for workers in both Mexico and the US.
Thus, international trading is extremely beneficial for any country that exports, as well as the one that allows imports. However, the flip side of the coin is that any work opportunity generated for workers in a country by International trading becomes a potential threat to the workers of the home country, when the company begins to outsource. For instance, any U.S. company that outsources its work to India because of availability of cheap labor generates work opportunities for Indian workers, which in turn decreases opportunities for native workers in the US. Similarly, as the work is outsourced, the Indian workers will always be at the risk of losing their jobs.
Thus, trading across borders is both a great opportunity as well as a threat for workers of the countries involved in the business. Opportunity for one can become a threat for the other. However, despite this and the fact that international trading is much costlier than domestic trade and involves several risks, it is a vital means to increase a nation’s employment and GDP.
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When Is International Trade An Opportunity For Workers ?
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