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

Trade, as it has already been said above, belongs to the most meaningful as well as crucial elements of each economy. It is implied by the fact that there is no country, which would have all of miscellaneous commodities that are necessary for its progress.

Pieniądze, Euro

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In addition, it might be possible that a country such as Russia or China can have access to wide range of various resources, but the problem is that other countries is likely to sell them significantly less expensive. This is so-called comparative advantage and is usually analyzed on different economic universities. The understanding of this fact has ended up in intensifying the exchange of goods internationally.

Although it can be perceived as a very positive tendency, as there is additional demand for our commodities, we are recommended to also not forget 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 nowadays. This proves that financial crisis in one country is significantly more influential on situation in other country than ever in the past.

To prove that thesis let’s go return to the year 2007, which is perceived to be the beginning of the economical crisis. The reason why it has started is referred to the fact that the American banks have reduced the safety standards, which led to growing demand on various bank loans. This has ended up in the fact that a lot of money was provided to people, who were unable to pay the rates, which meant that the supply level of estates in USA has reached top level. This led to decrease of their cost and, owing to series of connotations, it has also considerably impacted the topic of trade.


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As a result, trade is an area that is not possible to be evaluated with one word. It has both positive and negative side, which implies that the governments internationally should focus on taking advantage of the first one and governing the economies in such way that something that happened in 2007 would never take place.

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