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International Trade

Each activity has an impact, not least on international trade. The impact that is created can be positive and negative impacts. The following are the positive and negative impacts of international trade for the Indonesian economy.

Positive Impact of International Trade for the Indonesian Economy
International trade has a positive impact on Indonesia as follows:

Unmet demand for various goods and services.

Resident in the country concerned can obtain goods and services easily and cheaply as a result of the efficiency and specialization.

Increased foreign exchange.

The opening of employment opportunities.

The creation of friendship and cooperation between countries in various fields.

And encouraged domestic economic activity.

Negative Impact of International Trade for the Indonesian Economy
In addition to having a positive impact, international trade also have a negative impact. As for the negative impact caused by international trade are as follows:

The resignation of the domestic industry if people prefer products that are imported from abroad. This led governments in various countries perform protection policy. Protection policy issued by the government may take the form of quotas, tariffs, and subsidies.

The emergence of dependence on developed countries as the owner of the factors of production. With no such dependence, developed countries can establish economic policies that harm developing countries such as Indonesia.


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