Do the benefits of this trend outweigh the drawbacks?

Thanks to global trade, many goods, nowadays, have been transported in long distance. Although this trend has drawbacks, I believe that this creates a positive development.

One of the substantial benefits is reducing the dependence on one market. For example, we already know that America is one of the biggest for consuming coffee, but they do not produce yet. As a result, Brazil and Indonesia will have a big role to reduce prices of it and fulfill the daily needs. Secondly, expanding products globally improves domestic competitiveness. Hand-made sculpture from Thailand is one of the evidence that it will be sold in the other countries. The other example is carpet from Middle East, which has a unique pattern and substance. Therefore, If our products are being sold across the borders, then this tends to enhance our brand making our product attractive.

On the other hand, Global trade has the disadvantage of creating very major companies yet destroying small companies that have potential. Such as, In Indonesia “Tanggulangin shoes” is one of small firms which produce shoes from leather, and it will destroy gradually due to “Jimmy coo”, which is a global company which produce the same things. So even if one is to expand their company to trade globally, they are likely to encounter the threats of fighting big multinational companies.

The aforementioned evidence shows that although global trade has taken their benefits for around the world, it has the impact on it. However, I strongly believe that global trade is one of our opportunities to expand our business, as a result of the economic rate in our country will be increase. It is imperative that the government should do a “fair policy” to reduce the negative impacts.