MONEY MATTERS

International trade makes the countries dependent on foreign markets not only for procuring raw materials, but also for selling the finished products. The nation’s growth depends entirely on foreign factors and this dependence should be reduced or eradicated. The most important enemy of international trade and specialisation is nationalism.
During a war the nation that is dependent on foreign supply, lacks defence. The experience of England during the two World Wars is cited as proof for this argument. The blockage of England by German submarines had brought England to her knees, as the import of food and essential raw materials was cut off. This is, however, a political or military argument against free trade. Further, it should be understood that the concept of free international trade does not prohibit the countries from developing at least key industries in defence to defend the country during the times of war. Depending on foreign nations for national defence would be certainly a disastrous one. Thus, in the interest of national safety certain goods may have to be manufactured irrespective of the cost involved.
In modern days, international trade is condemned because economic planning would ensure full employment in the economy and international trade is positively harmful for a country’s planned economic development. Protectionists put forth several arguments to justify protection of domestic industries against foreign competition and they vehemently oppose international trade and specialisation on the basis of national security, economic stability, full employment etc. But international trade helps in the growth of a nation and this cannot be argued.

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