Social drawbacks: Consumer ethics Consumers may have less information about how foreign goods are made particularly in relation to sustainability and treatment of workers. Unemployment Competition from low-wage foreign producers may cause unemployment in Ireland. Environmental costs
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International trade leads to significantly larger ¶ ¶
volumes of transport worldwide. This causes more CO2 emissions which is contributing to climate change. The growth of trade is also contributing to resource depletion. Treatment of labour Poor working conditions, low pay and long hours are still prevalent in poor countries where manufacturers can take advantage of poor governance and weak industrial relations. While this helps to keep the cost of goods low, it is at the expense of workers in developing countries. Income gaps
Some economists argue that international trade is increasing the gap between rich and poor countries. This is because trade is increasingly dominated by large Western multinational firms who control most of the global marketing and distribution channels.
Business Careers
International Sales Managers are responsible for identifying foreign customers and selling a company’s products and services to them.
5. What are the challenges for businesses engaging in international trade?
In spite of the benefits and the appearance of open economies worldwide, international trade is still not fully free and fair. Certain cultural, political and economic barriers still exist. Costs
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There are two important costs associated with international trade – transport and payment. Technological breakthroughs such as larger ships and innovations such as containerisation have helped to reduce transport costs. However, the payment of goods through the local currency remains a cost as currencies need to be exchanged and financial institutions charge for this service.
