DISADVANTAGES OF INTERNATIONAL TRADE
- Encouragement of Dumping: International trade can lead to dumping of goods into the less developed countries by multi-national companies from the developed nations. This countries therefore become dumping grounds for all kinds of products.
- It affects infant industries: Foreign trade also affects newly established industries (infant industries) negatively as they cannot complete favourably with their well- established foreign counterparts.
- Destruction of cultural values of a country: Importation of a certain goods such as x-rated films and immoral fashion can destroy the moral and cultural values of a country. It can thus lead to decadence in social norms. For example in Nigeria, massive importation and use of indecent attire or clothes from Western World is anti-cultural and against our social norms.
- Importation of dangerous or harmful goods: Through foreign trade, harmful or dangerous goods can be imported into a country by unscrupulous businessmen.
- Creation of balance of payment deficit: This is possible when foreign trade is not restricted and the level of import is higher than export. This may lead to a drain in the foreign exchange reserve which can result in balance of payment problems.
- Unemployment: Foreign trade can lead to unemployment because continued importation of cheaper products from foreign countries may reduce the level of production of local industries producing similar products and this may result in retrenchment of workers.
- Reduction of effort to attain self- reliance: Uncontrolled and unrestricted
inflow of goods can reduce effort to attain self-reliance because the people can always get what they want from abroad, hence the culture of self- sufficiency will be destroyed.
- It leads to exploitation: The developed nations which are highly industrialized may use their advantageous position to exploit the less developed countries.
153. FUNGAL DISEASES