international trade imbalance

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Nowadays, the imbalance of international trade has become the most important topic in the logistics market. The global logistics industry has been developed for many years, with advanced technology and management tools, and the trade volume of goods global is significantly increasing. With the unb......

Nowadays, the imbalance of international trade has become the most important topic in the logistics market. The global logistics industry has been developed for many years, with advanced technology and management tools, and the trade volume of goods global is significantly increasing. With the unbalanced international trade, the cost of logistics and transportation is increased, the economy of countries is affected and even the whole world is affected.

The imbalance of international trade has been caused by the imbalance of production capacity and demand of global market. The traditional market economic theory usually identifies supply and demand as the leading indicator of price, but not all the problems of unbalanced international trade can be resolved by this theory. The problem of unbalanced international trade is not only caused by the supply-demand imbalances but also caused by the differences in production capacity among countries and regions. For example, some countries and regions have more advanced technology and more resources, which leads to the accumulation of production capacity. This causes other countries and regions to be less competitive in manufacturing industries.

In addition, the current international market has grown to be a highly globalized system, which plays a major role in the imbalance of international trade. The concentration of certain products or services may cause global imbalance in trade due to the interdependencies among countries. For instance, a company located in one country may be able to produce a specific product or services better than its competitors from other countries, allowing it to monopolize the market. And this may lead to unbalanced international trade.

Furthermore, due to the globalization of the world economy, many countries interdependent each other in terms of business investme, finance flow and environment which lead to the disorder of global economic order. The relationship between countries can’t escape from the traps of globalization, and the demand of customers turn to be the main resource for various companies to survive in the competitive environment. The competition among countries brings the products’ renewal and price reduction and makes the world become much closer.

At the same time, the advanced technology and capital flow within the global market can lead to the imbalance of international trade. The increased efficiency of production and transportation technology, along with the enhanced capital mobility and institutional structure, makes it easier for advanced countries to outsource the production and increase their international trade. Also, capital flows within the global market often favor advanced countries, giving them the opportunity to expand their production and consumption even further.

All of the factors mentioned before contribute to the imbalance of international trade. To solve the negative effects of unbalanced international trade, governments must promote an open global trade policy and impose rules on the inspection and supervision of international transactions. Government also need to build a balanced multilateral trading system to ensure fairness of global trade. Moreover, they need to promote economic development of backward countries so that they won’t be heavily influenced by the advanced countries in terms of production and international trade. In addition, the global market should encourage international cooperation and dialogue between countries to avoid short-term solutions that could lead to long-term damage.

In conclusion, although international trade has brought tremendous benefits to the global economy, unbalanced international trade can be damaging to both the economy of certain countries and the world economy. Governments must work together to create balanced multilateral trading systems, promote economic development of backward countries, encourage international cooperation and dialogue, and encourage fair and open competition in global markets. Only then will international trade be truly beneficial for everyone.

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