Why has trade become an important element of each economy nowadays?

Trade, as it has already been said in the title, belongs to the most influential as well as crucial elements of each economy. It is connected with the fact that there is no country, which would have all of diverse goods that are necessary for its development.

Pieniądze, Euro

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Moreover, it can be possible that a country such as Russia or China can have access to great variety of various resources, but the difficulty is that other countries is likely to sell them considerably less expensive. This is so-called comparative advantage and is regularly learnt on various economic universities. The understanding of this fact has ended up in stepping up the exchange of products in different countries.

Although it might be considered as a pretty positive tendency, as there is additional demand for our products, we ought to also keep in mind that it also has its negative sides. One of the most influential is referred to the fact that the countries have never been so dependent on each other as they are these days. This implicates that financial crisis in one country is substantially more influential on other country than ever in the past.

To illustrate this thesis let’s go return to the year 2007, which is considered to be the beginning of the economical crisis. The reason why it has begun is connected with the fact that the American banks have decreased the safety standards, which led to increasing interest on various bank loans. This has resulted in the fact that a lot of money was offered to people, who were unable to pay the rates, which implied that the supply level of estates in USA has reached top level. This led to decrease of their cost and, due to series of connotations, it has also significantly impacted the sphere of trade.


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As a result, trade is an area that is unable to be evaluated with one word. It has both positive and negative side, which implicates that the governments internationally ought to focus on taking advantage of the first one and governing the economies in such way that something that took place in 2007 would never return.