There has been a recent increase in global trade which has led to many goods including those that we consume every day to be produced in different countries and transported long distances. Although there are benefits to be derived from this trend, there are also some drawbacks.
Firstly, one obvious benefit of having different countries producing goods and services will help to boost the economy of the countries. This is because product manufacturing is one of the revenue generating sectors of the economy of many nations. Therefore, the manufacture of goods in these various countries will result to a growth in its economy. Another benefit to consider is also the employment opportunity this will create. For example, people will be employed by the manufacturing companies to carry out the roles of producers, while some others will be employed to supply the products. This is certainly a plus to every nation.
On the other hand, one of the setbacks of this approach the fact that many goods are now being transported long distances. This will invariably attract additional cost for the transportation. As a result, the total cost of producing the goods would increase. The increase in the production cost would have a negative effect on the amount of profit to be generated from such products. Another drawback to consider is the tendency of such products to spoil while in transit. This applies most especially to perishable goods which are not able to travel long distances because they lose their freshness over a short period.
In conclusion, there is no doubt that there are benefits to the increase in global trade, however, there are also setbacks to this trend. I believe that if the transportation service is improved on, goods will be commuted faster to their destination and perishable goods will survive.
There has been a recent
increase
in global trade which has led to
many
goods
including those that we consume every day to
be produced
in
different
countries
and transported long distances. Although there are
benefits
to
be derived
from this trend, there are
also
some
drawbacks.
Firstly
, one obvious
benefit
of having
different
countries
producing
goods
and services will
help
to boost the economy of the
countries
. This is
because
product
manufacturing is one of the revenue generating sectors of the economy of
many
nations.
Therefore
, the manufacture of
goods
in these various
countries
will result to a growth in its economy. Another
benefit
to consider is
also
the employment opportunity this will create.
For example
,
people
will
be employed
by the manufacturing
companies
to carry out the roles of producers, while
some
others will
be employed
to supply the
products
. This is
certainly
a plus to every nation.
On the other hand
, one of the setbacks of this approach the fact that
many
goods
are
now
being transported
long distances. This will
invariably
attract additional cost for the transportation.
As a result
, the total cost of producing the
goods
would
increase
. The
increase
in the production cost would have a
negative
effect on the amount of profit to
be generated
from such
products
. Another drawback to consider is the tendency of such
products
to spoil while in transit. This applies most
especially
to perishable
goods
which are not able to travel long distances
because
they lose their freshness over a short period.
In conclusion
, there is no doubt that there are
benefits
to the
increase
in global trade,
however
, there are
also
setbacks to this trend. I believe that if the transportation service is
improved
on,
goods
will
be commuted
faster to their destination and perishable
goods
will survive.