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Hi /biz/, I figured this is something you guys could answer

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Hi /biz/,

I figured this is something you guys could answer better than /sci/, so here goes:

Are there any forms of trade increases that may lead to an eventual shrinkage of the economy? Isn't more trade always good?
>>
A eventual shrinkage, yeah, I mean this includes basically any unsustainable trade practice. If OPEC nations were to, for example, dump all of their reserves on the market at low prices instead of controlling exports.
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>>1699221
Why is that unsustainable, environmental issues aside?
>>
>>1699258
Lack of stock oversupply
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>>1699260
So it can only happen with non-renewable resources?
>>
>>1699264

I guess that depends on what you define as a "resource". There are a number of scenarios where it would occur with capital. Say if Country A imports consumable goods from Country B. If the citizens of Country A fail to use their capital to create new profit and instead use it to buy imported consumable goods then Country A's economy is eventually going down the shitter regardless of whether the supply of imported goods have been exhausted.
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>>1699300
Sounds like the big issue there is the missed opportunity.
>>
>>1699329

All the same, more trade isn't always better for a nation's economy.
>>
Boy, liver you can grow fastest.
>>
>>1699338
I can somewhat picture it when concrete examples crop up, but can't quite see it in general. I'm also kinda more interested in the matter in terms of a nation's internal market, rather than imports and exports.
>>1699341
Thx, will look it up genius!
>>
>>1699363

>I'm also kinda more interested in the matter in terms of a nation's internal market, rather than imports and exports.

It works the same way, just without policy factoring into the equation. A good example is the "buy local" movements. Following these to their logical conclusion would probably see less net trade but more resilient local economies. You get your beer from a local brewer instead of Bud Lights from Walmart, and you may pay a little more, but the money stays close to you and is more likely to help you in the long run.
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>>1699376
>You get your beer from a local brewer instead of Bud Lights from Walmart, and you may pay a little more

Shouldn't this increase trade, since you have to pay more for the same product?
>>
>Shouldn't this increase trade, since you have to pay more for the same product?
Think drugstores, for instance.
>>
Do you even remember this shit?
https://www.youtube.com/watch?v=fc2zO0tJ50c
>fucking Americans
>>
>>1699401
Not following.

>>1699346
>>1699412
???
As a non-American, I feel sorry for that Lion though.
>>
Thing is.
>>
>>1699189
>Are there any forms of trade increases that may lead to an eventual shrinkage of the economy? Isn't more trade always good?
A historical counterexample was the opium trade in China.
Thread posts: 17
Thread images: 1


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