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Why has trade become an inevitable element of each economy these days?

finanse, pieniądze
Trade, as it has already been analyzed in the top, belongs to the most important 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 products that are necessary for its development.

Pieniądze, Euro
Autor: http://sxc.hu
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Moreover, it can be possible that a country such as Russia or China may have access to broad variety of different resources, but the complication is that other countries might sell them significantly less expensive. This is so-called relative advantage and is regularly analyzed on different economic universities. The understanding of this tendency has ended up in growing the amount of the exchange of goods worldwide.

Although it might be perceived as a quite positive tendency, as there is additional demand for our commodities, we are recommended to also not forget that it also has its harmful sides. One of the most influential is connected with the fact that the countries have never been so dependent on each other as they are at present. This indicates that financial crisis in one country is significantly more influential on situation in other country than ever in the past.

To prove this thesis let’s go return to the year 2007, which is perceived to be the start of the financial crisis. The reason why it has begun is referred to the fact that the American banks have decreased the safety standards, which led to growing demand on different bank loans. This has ended up in the fact that significant amount of money was given 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, owing to series of connotations, it has also substantially influenced the field of trade.

Autor: www.sxc.hu
Źródło: www.sxc.hu
Therefore, trade is a sphere that is not possible to be assessed with one word. It has both positive and negative side, which implicates that the governments globally should focus on benefitting from the first one and governing the economies in such way that something that took place some years ago would never come back.