Sunday, December 24, 2017

International Economic Benefits

The international economy will create an inter-state economic cooperation characterized by the large number of incoming foreign investment and increased import export activities. The benefits of the international economy will make many changes for the country towards a new, better civilization in economic, technological and social activities. Here are the benefits gained from the international economy, that is.

1. The availability of employment
One manifestation of the international economy is the existence of international trade. When a country has limitations in carrying out domestic production activities itself, in order to meet the growing demand for demand from the community, the state needs a step that is able to balance such conditions. The right step for such a solution is to open up international trade.

International trade is a major gateway in import export activities. High demand for exports will have an impact on the demands of increased business performance in production activities, on the one hand must prepare the availability of products and on the other hand they must improve product quality continuously in order to give satisfaction to the consumer. Increased exports will provide many benefits not only felt by the state or the company, but the general public will feel a direct positive impact.

The availability of employment will increase in line with the high demand for exports, because one of the factors that determines the level of production activity continues to increase is very dependent on the presence of sufficient labor in addition to the need for raw material availability

2. To meet the needs of goods and services
Natural resource and human resource factors owned by a country are important factors that will determine the type of product goods and services to be produced by the country. Because of these two factors it will cause a constraint that will be the cause of the limited production owned by the state, even there is a country that 40% of domestic consumption can only be met by relying on import activities, this is because the limited amount of infrastructure owned by the state that.

The need for the availability of goods and services for the community, currently has a tendency to change because of technological advances that impact on behavior change. Such technological advances will force business actors to accelerate innovation in the production of goods and services tailored to meet the tastes and demands of today's society. Needs and demand that constantly change then demanded the availability of raw materials in producing products that fit their needs, which raw materials may not be produced by the country. So the solution to overcome the scarcity of the country's raw materials must rely on international trade activities in order to meet the needs of raw material supply.

3. Prices of goods and services will be cheaper
The scarcity of products on the market will have a devastating effect on market price stability. Generally, the occurrence of scarcity of products can occur due to the small number of business actors in one particular type of industry resulting in low levels of production, in addition to the scarcity of raw materials will also be a constraint in the decline in production activities. With such market conditions, when a lot of demand from the society continues to increase, will result in an imbalance between the number of products produced by the number of existing demand, so that will trigger a price change more likely to become more expensive.

As prices become more expensive and start to get out of hand, the potential for inflation will be even higher. Inflation will trigger many changes to the social order, where rising prices will result in rising costs of living, capital production activities are also higher, and wage demands will also increase. To avoid this danger, steps are needed to balance demand and product availability, ie by increasing the amount of production, but when the country has limitations in this case the best solution is to increase the import quota of goods in accordance with the public demand. Import benefits in addition to meeting product demand will also keep the price level in the market in order to remain stable and inexpensive.

4. Increase the source of state income
International economic benefits with the opening of world trade markets have a positive impact on the potential to increase export activity. Indonesia is a country rich in the production of energy and agro-industry, it will be a country that greatly benefited from the existence of natural resources that is placing the country as a supplier of raw materials sources for some countries that have limitations in natural resources such as America and China .

Increasingly increasing exports will become a medium for creating opportunities for the country in introducing domestic brands to be more famous and expand the product market. For business actor export activities have an effect on the increasing of profits that can be useful to increase productivity and new innovations. For countries with increased export activity will increase income for the country in the form of foreign exchange. The ever-increasing foreign exchange will be beneficial to the acceleration of development, foreign debt repayment, and increasing economic growth.

5. Improve technological development
Technology is generally created by developed countries where in the country there are complete facilities and infrastructure to support in all activities for research and development or new discovery in the field of Information Technology (IT). For a developing country that can not keep up with developments from developed countries, it will place them only as connoisseurs of technology. With the international economy, will be a major factor in opening the spread of science and technology, where the technology is not only enjoyed by developing countries, but can be studied and finally able to develop to be applied in happy aspects of human life that impact on providing convenience in the speed of information.