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Saturday, May 17, 2008

World trade

Talk about world trade.

In the past when men’s needs were few, it was not necessary to get things from distant lands. But, today, the people of one country depend on the people of another country for a variety of things. As a result, world trade has developed.

Without world trade it would be difficult for the people of any country to get many things which are now considered necessaries. Some countries are not rich in mineral resources. They have no iron or coal mines, while others have too many of them. Again, some countries are not suitable for agriculture while others have several fertile plains to grow crops.

Further, even if a country is rich in natural resources, it may not have enough skilled men to exploit them. For such geographical and other reasons the people of the world have learnt to buy things which they cannot produce profitably and to sell things for which they have a special ability to produce. West Malaysia, for example, specializes in producing rubber for which there is a great demand from several courtiers in the world. But she has no ability to produce machinery and several other things. West Malaysia therefore depends on other courtiers for many of her needs.

In the same way, all the countries of the world cooperate and exchange things with one another. From other countries we get motorcars, radios, television sets and several other things, which we cannot produce ourselves. At the same time we give to other countries the things that we can produce better than many others. In this way, every country specializes in producing only a few things. As a result, the quality of goods is improved to the common benefit of the people of the world.

World trade has also raised the standard of living of the people in the world. We are able to use things made in countries across miles of ocean. As a result of all this, life has become more comfortable than what it was before; and it is realized that a country could hardly progress without world trade.

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