3.8. Limitations of International Trade

The limitations and demerits of the international trade can be studied as follows:

1) It creates a scenario dependence on other countries.

2) More inequalities and uneven levels of development are created.

3) International trade promoted exploitation, and commercial rivalry leading to wars

4) Global trade affects many aspects of life.

5) Through rapid changes in consumption and production pattern, international trade impacts everything from the environment to health and well-being of the people around the world.

6) International trade works to economy's and a company's advantage and leads to more, production and the use of natural resources. It is detrimental to resources' consumption.

7) Resources get used up at a faster rate than they can be replenished.

3 Leading exporters and importers in World merchandise trade, 2012

8) Through increased shipping on account of increase in tourism and trade marine life depletes fast.

9) As a result of exploitation of natural resources forests are being cut down.

10) The river basins and underground water are used sold off to private drinking water companies.

11) There is more pollution on account of expanding business especially by multinational corporations trading in oil, gas mining, pharmaceuticals and agri-business.

12) The norms of sustainable development are neglected as there is more profit maximisation.