Disadvantages Of Global Trade

1392 Words6 Pages
Each country has its own currency that is utilized as the primary mode of payment for various goods and services within the borders of the nation. For e.g. the currency in India is the Indian Rupee; the currency in the United States of America is the US Dollar; the currency in Japan is Yen etc. In a self-sufficient global scenario, there would be no pressing need for exchange rates. Each nation would function as if no other nation existed. The countries would manufacture goods and services that would be consumed only by the inhabitants of the nation. If a country were devoid of a certain resource, it would have no scope in that particular field. Global trade would be non-existent in such a scenario. But fortunately, such a scenario is purely theoretical. Trade and commerce have always been flourishing since the development of transportation. International trade is beneficial to all parties involved. The current global trade scenario is skewed in favour of the countries that have a greater manufacturing capacity. For the year2013-14, the US exported goods and services worth $2,345.4 billion and imported goods and services worth $2850.5 billion. While for the same period, India’s exports were worth $312.6 billion and imports were worth $450.1 billion. Clearly, the US has a greater share of the global trade market compared to India. For the period 2013-14, the value of total exports globally was $18,301 billion while that for imports is $18,409 billion. The US exports

More about Disadvantages Of Global Trade

Open Document