TEN ECONOMIC BENEFITS OF INTERNATIONAL TRADE

1. Variety Of Goods

International trade gives Americans access to goods that would not be available otherwise. A classic
example of this access is the availability of oranges in the middle of winter. The Senate’s Joint Economic
Committee found that since 1972, trade variety has increased almost 400 percent, due in large part to
international trade agreements. The variety of goods stretches across all sectors of the economy, giving
Americans more choice in the items that they purchase, and exposing them to new products.

2. Outlet For Surpluses

Without international trade, a company’s potential market is limited to the population of the country in
which it operates. During the 1920s, the United States experienced how damaging this situation could
be. American companies flooded the durable goods market with products, then lacked an outlet for
additional production. Economic historian Christiana Romer attributes the onset of the Great
Depression, in part, to a saturation of the durable goods market and a lack of market opportunities for
American companies due to American isolationism.

International trade expands the total market size to include every nation with which the United States
maintains trade relations. American manufacturers can market to American audiences, and maintain an
international outlet for products when American sales slow.

3. Reduction Of Market Fluctuations

In every sector, the market ebbs and flows. In one part of the year, consumers demand significantly
higher quantities of an item, and in the rest of the year, demand plummets, a practice most often seen
with seasonal clothing.

The sheer size of the international market helps to mitigate many of the wild fluctuations in sales.
Seasonal sales become less impacted by conditions within the United States, and international demand
provides a reason for American companies to continue producing.

4. Lower Costs

One of the most immediate benefits of international trade is lower costs to consumers. The lower cost is
the result of two factors. First, companies can produce items overseas, saving money on labor and
material costs. Second, a/XCn increase in competition forces companies to make their products more
attractive to consumers either through product features or lowered prices.

An analysis of the CAFTA agreement found that retail prices decreased considerably as a direct result of
the agreement. Consumers paid much lower prices for food imports, and a reduction of investment
barriers prompted foreign investors to spend money building the domestic economies and infrastru
ctures of member nations.
5. Production Efficiency

The increase in competition and price pressure from imported goods forces companies to become more
efficient in their production practices and overall operation. Companies achieve better efficiencies in a
number of ways. They may innovate new methods of production or improve the processes they already
have in place. They may experiment with new materials, or seek alternative sources for the essential
components of their product.

The drive for efficiency is a boon for consumers. As a result of the improved production, retail prices
continue to drop, and in most cases, the competition for retail dollars forces companies to improve the
quality of their products.

6. Resource Specialization

Large countries like the United States and China have access to almost every resource they need, from
minerals to land, and even oil. Smaller nations are not as lucky, and must rely on imports to provide
their citizens with basic necessities.

International trade allows nations to specialize their economies in the areas where their resources are
best allocated. For instance, the rich oil reserves of Saudi Arabia make it a natural exporter of oil, while
the wide-open spaces in Brazil make it an ideal location for ranchers.

7. Innovation

For companies, a central theme of international trade is innovation. They must innovate to distinguish
their products from increased competition; innovate to improve their cost to consumers; and innovate
to be first to market with new ideas.

The Office Of The United States Trade Representative (USTR) demonstrated that American firms that
compete in international markets are far more likely to spend money on research and development than
companies solely focused on the domestic market. The reason for the spending on innovation is
ascribed to both the need to compete with other companies, and the potential for quick returns in
international markets.

8. Investment

International trade prompts investment in two ways. First, companies invest in internal research and
development to bring new products to market or improve on existing products. The large size of the
international market means that companies can potentially see a return on their investment much faster
than they could if they were only selling to domestic consumers.

The second way international trade affects investment is by opening new markets for American
investment dollars. In the wake of the NAFTA agreement, billions of dollars from American investors
flooded Mexico. These dollars built new factories and created new job opportunities for millions of
Mexican citizens, who then had the money to purchase goods from American companies.
9. Jobs

The chief complaint about international trade agreements is that they take away American jobs, and
while the trade agreements did lower opportunities in the manufacturing sector, trade does promote
job growth in other areas.

The USTR’s data show trade agreements supported more than 11 million American jobs in 2013, the last
year data are available. Furthermore, the USTR argues that in industries like agriculture, every billion
dollars in exports created more than 6,500 additional jobs.

10. Peace

Thomas Friedman, in his book The Lexus and the Olive Tree, famously wrote that no two countries with
McDonald’s have ever gone to war with each other. The assessment points out the importance of trade
and economic incentives in promoting world peace.

Countries with strong international trade agreements rarely go to war with each other, because the
economic and political cost of such a decision would be devastating. International trade creates
economic interdependency and an incentive to find peaceful, diplomatic solutions to international
conflicts, rather than military solutions.

International trade is a deeply divisive issue that evokes emotions on both sides. Understanding the
positive outcomes of international trade, both for consumers and American companies, opens a broader
view of the issue, and puts the role of international trade in perspective.
 SEPULUH MANFAAT EKONOMI DARI PERDAGANGAN INTERNATIONAL

1. Keanekaragaman barang

Perdagangan internasional memberikan orang Amerika akses ke barang-barang yang tidak tersedia di
Negara mereka. Contoh klasik dari akses ini adalah ketersediaan jeruk di tengah musim dingin. The
Senate’s Joint Economic Committee menemukan bahwa sejak tahun 1972, berbagai perdagangan telah
meningkat hampir 400 persen, sebagian besar peningkatan karena perjanjian perdagangan
internasional. Berbagai barang tersedia di semua sektor ekonomi, memberikan Amerika lebih banyak
pilihan dalam barang-barang yang ingin mereka beli, dan menyediakan mereka ke produk-produk baru

2. Outlet Untuk Surplus

Tanpa perdagangan internasional, pasar potensial perusahaan akan terbatas pada populasi negara di
mana ia beroperasi. Selama tahun 1920, Amerika Serikat mengalami situsi yang rusak ini. Perusahaan-
perusahaan Amerika membanjiri pasar barang-barang tahan lama dengan produk, kemudian tidak
memiliki saluran untuk produksi tambahan. Sejarawan ekonomi Christiana Romer mengaitkan omset
Depresi Besar, sebagian, dengan kejenuhan pasar barang tahan lama dan kurangnya peluang pasar
untuk perusahaan-perusahaan Amerika karena isolasionisme Amerika.

Perdagangan internasional memperluas ukuran pasar total untuk memasukkan setiap negara dengan
cara Amerika Serikat mempertahankan hubungan perdagangan. Produsen Amerika dapat memasarkan
ke khalayak Amerika, dan mempertahankan outlet internasional untuk produk ketika penjualan Amerika
melambat.

3. Pengurangan Fluktuasi Pasar

Di setiap sektor, pasar surut dan mengalir. Dalam satu bagian tahun, konsumen menuntut jumlah
barang yang jauh lebih tinggi, dan di sisa tahun itu, permintaan merosot, praktik yang paling sering
terlihat dengan pakaian musiman.

Ukuran pasar internasional yang besar membantu mengurangi banyak fluktuasi penjualan liar. Penjualan
musiman menjadi kurang dipengaruhi oleh kondisi di Amerika Serikat, dan permintaan internasional
memberikan alasan bagi perusahaan Amerika untuk terus berproduksi.

4. Biaya Lebih Rendah

Salah satu manfaat paling cepat dari perdagangan internasional adalah biaya yang lebih rendah bagi
konsumen. Biaya yang lebih rendah adalah hasil dari dua faktor. Pertama, perusahaan dapat
menghasilkan barang di luar negeri, menghemat uang untuk biaya tenaga kerja dan material. Kedua,
peningkatan persaingan memaksa perusahaan untuk membuat produk mereka lebih menarik bagi
konsumen baik melalui fitur produk atau menurunkan harga.
Analisis dari perjanjian CAFTA menemukan bahwa harga eceran menurun secara signifikan sebagai hasil
langsung dari perjanjian. Konsumen membayar harga yang jauh lebih rendah untuk impor makanan, dan
pengurangan hambatan investasi mendorong investor asing untuk menghabiskan uang membangun
ekonomi dan infrastruktur domestik negara-negara anggota.

5. Efisiensi Produksi

Peningkatan persaingan dan tekanan harga dari barang-barang impor memaksa perusahaan untuk
menjadi lebih efisien dalam praktik produksi mereka dan operasi secara keseluruhan. Perusahaan
mencapai efisiensi yang lebih baik dalam beberapa cara. Mereka mungkin berinovasi dengan metode
produksi baru atau meningkatkan proses yang sudah mereka miliki. Mereka mungkin bereksperimen
dengan material baru, atau mencari sumber alternatif untuk komponen penting produk mereka.

Dorongan untuk efisiensi adalah anugerah bagi konsumen. Sebagai hasil dari peningkatan produksi,
harga eceran terus menurun, dan dalam banyak kasus, persaingan untuk dolar eceran memaksa
perusahaan untuk meningkatkan kualitas produk mereka.

6. Spesialisasi Sumber Daya

Negara-negara besar seperti Amerika Serikat dan Cina memiliki akses ke hampir setiap sumber daya
yang mereka butuhkan, dari mineral ke tanah, dan bahkan minyak. Negara yang lebih kecil tidak
seberuntung itu, dan harus bergantung pada impor untuk menyediakan kebutuhan dasar bagi warganya.

Perdagangan internasional memungkinkan negara-negara untuk mengkhususkan ekonomi mereka di

daerah-daerah di mana sumber daya mereka paling baik dialokasikan. Sebagai contoh, cadangan minyak
yang kaya dari Arab Saudi menjadikannya pengekspor minyak alami, sementara ruang terbuka yang luas
di Brasil menjadikannya lokasi yang ideal bagi para peternak.

7. Inovasi

Bagi perusahaan, tema sentral perdagangan internasional adalah inovasi. Mereka harus berinovasi
untuk membedakan produk mereka dari produk pesaing lainnya dan berinovasi untuk meningkatkan
biaya mereka kepada konsumen dan berinovasi untuk menjadi yang pertama turun ke pasar dengan
ide-ide baru.

Kantor Perwakilan Perdagangan Amerika Serikat (USTR) menunjukkan bahwa perusahaan-perusahaan

Amerika yang bersaing di pasar internasional jauh lebih mungkin menghabiskan uang untuk penelitian
dan pengembangan daripada perusahaan yang hanya fokus pada pasar domestik. Alasan pengeluaran
untuk inovasi dianggap berasal dari kebutuhan untuk bersaing dengan perusahaan lain, dan potensi
pengembalian cepat di pasar internasional.
 8. Investasi

Perdagangan internasional mendorong investasi dalam dua cara. Pertama, perusahaan berinvestasi
dalam penelitian dan pengembangan internal untuk membawa produk baru ke pasar atau meningkatkan
produk yang ada. Ukuran besar pasar internasional berarti bahwa perusahaan dapat berpotensi melihat
laba atas investasi mereka jauh lebih cepat daripada yang mereka dapat jika mereka hanya menjual
kepada konsumen domestik.

Cara kedua perdagangan internasional mempengaruhi investasi adalah dengan membuka pasar baru
untuk dolar investasi Amerika. Setelah perjanjian NAFTA, miliaran dolar dari investor Amerika
membanjiri Meksiko. Dolar ini membangun pabrik baru dan menciptakan peluang kerja baru bagi jutaan
warga Meksiko, yang kemudian memiliki uang untuk membeli barang-barang dari perusahaan-
perusahaan Amerika.

9. Pekerjaan

Keluhan utama tentang perjanjian perdagangan internasional adalah bahwa mereka mengambil
pekerjaan Amerika, dan sementara perjanjian perdagangan melakukan peluang yang lebih rendah di
sektor manufaktur, perdagangan tidak mendorong pertumbuhan pekerjaan di bidang lain.

Data USTR menunjukkan perjanjian perdagangan mendukung lebih dari 11 juta pekerjaan Amerika pada
tahun 2013, data tahun terakhir tersedia. Lebih jauh, USTR berpendapat bahwa dalam industri seperti
pertanian, setiap miliar dolar dalam ekspor menciptakan lebih dari 6.500 pekerjaan tambahan.

10. Perdamaian

Thomas Friedman, dalam bukunya The Lexus and the Olive Tree, terkenal menulis bahwa tidak ada dua
negara dengan McDonald's yang pernah berperang satu sama lain. Kajian ini menunjukkan pentingnya
insentif perdagangan dan ekonomi dalam mempromosikan perdamaian dunia.

Negara-negara dengan perjanjian perdagangan internasional yang kuat jarang berperang satu sama lain,
karena biaya ekonomi dan politik dari keputusan semacam itu akan sangat merugikan. Perdagangan
internasional menciptakan interdependensi ekonomi dan insentif untuk menemukan solusi diplomatik
yang damai terhadap konflik internasional, daripada solusi militer.

Perdagangan internasional adalah masalah yang sangat memecah belah yang membangkitkan emosi di
kedua sisi. Memahami hasil positif dari perdagangan internasional, baik untuk konsumen dan
perusahaan Amerika, membuka pandangan yang lebih luas tentang masalah ini, dan menempatkan
peran perdagangan internasional dalam perspektif.
1. Isolationism is a category of foreign policies institutionalized by leaders who assert that their
nations' best interests are best served by keeping the affairs of other countries at a distance.
One possible motivation for limiting international involvement is to avoid being drawn into
dangerous and otherwise undesirable conflicts. There may also be a perceived benefit from
avoiding international trade agreements or other mutual assistance pacts
2. fluctuations is upward or downward swings in the prices of products in an economy.
Fluctuations in prices are a common phenomenon in the economic world, particularly among
producers of agricultural products.
3. perspective is the way you see something
1. how the company makes the product efficiently?
Answer : They must innovate new methods of production or improve the processes they already
have in place. They may experiment with new materials, or seek alternative sources for the
essential components of their product.
2. why a company should make innovation?
Answer : They must innovate to distinguish their products from increased competition; innovate
to improve their cost to consumers; and innovate to be first to market with new ideas.
3. How International trade prompts investment?
Answer : companies invest in internal research and development to bring new products to
market or improve on existing products and by opening new markets for American investment
dollars.
4. Why countries with strong international trade agreements rarely go to war with each other?
Answer : because the economic and political cost of such a decision would be devastating each
other
5. what makes the cost lower?
Answer : companies can produce items overseas, saving money on labor and material costs. And
increase in competition forces companies to make their products more attractive to consumers
either through product features or lowered prices.
 AEC FOR INDONESIA

MASYARAKAT EKONOMI ASEAN(MEA) or ASEAN ECONOMIC COMMUNITY (AEC) is a form of economic

unification of ASEAN in a free trade guardianship system between Asean countries. Indonesia and nine
other ASEAN member countries that have agreed on the agreement. AEC in form with the aim of free
flow of goods, services, and labor, as well as a more free flow of investment between Southeast Asian
countries.

The ASEAN Economic Community (AEC) will establish ASEAN as a single market and production base to
make ASEAN more dynamic and competitive with mechanisms and measures to strengthen the
implementation of new existing economic initiatives facilitate the movement of business, skilled labor
and talents; and strengthening the institutional mechanism of ASEAN. As an initial step to realize the
ASEAN Economic Community

In its application in 2015 the MEA will implement 12 priority sectors called free flow of skilled labor for
health care tourism, logistics services, e-ASEAN, transportation services air (air travel transport), and
much more. MEA will make ASEAN as a major country, the people of ASEAN region will have the
freedom to travel to a country and out of ASEAN countries without any obstacles. Residents have the
freedom and convenience to choose the location of work that is considered to provide satisfaction for
himself.

The economic benefits that will be in Indonesia , first Indonesia can market products in the form of
goods and services in ASEAN countries freely without being bound by strict rules and binding again so
fluctuations happen, secondly, Indonesia has the opportunity to develop its economic potential to
become a category of developed countries, more developing countries, the Indonesian nation has a
wider opportunity to work and mingle in the international arena and lastly Improve the bilateral or
multilateral relations of the Indonesian nation with other countries in Southeast Asia.

While the disadvantage of AEC is more goods and services will enter Indonesia which may cause the
society will increasingly difficult to compete with competitors from abroad, competition both micro and
macro business will be more difficult and competitive, so it is feared there will be dominance against the
strong parties from the economic side so as to bring up capitalism, with the occurrence of competition
in the economic field there will be fears of an increase in criminal rates due to increasingly difficult
economic competition, so that various ways perspective that are not halal to be halal.
FINAL TEST BAHASA INGGRIS

Oleh :

ARINI MARLIANARIZKY AZZAHRA

1710313320006

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FAKULTAS EKONOMI DAN BISNIS

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