Answer to Question #181691 in Macroeconomics for Meme

Question

International trade is a topic that is widely excepted as good by economist as well as the World Trade Organization. Why do you believe that it is such a controversial issue in politics?

Answer 1

International trade takes place between the countries where the enterprises use each other as the market for their products and services. In ideal conditions, international trade helps to maximize the efficiency level and gain from the trade for all the parties involved. Though, it involves controversy due to many reasons. The first reason is the unequal terms and conditions of the trade when one country gains heavily, but another country suffers in terms of destruction of industries and loss of jobs due to imports. It makes the poor countries raise their voices at different international platforms such as the WTO. The second reason is the rich countries and their MNC enterprises, looking for opportunities to exploit the poor regulatory system and promoting unethical conduct such as rent-seeking. It creates chaos and offsets the benefits of international trade. Further, the world organizations such as IMF and World Bank implementing the agenda to force international trade in return for financial support also makes international trade to be controversial.