Tarlac State University

College of Business and Accountancy

DEPARTMENT OF ECONOMICS

“Opening Minds, Creating Futures”

International Business and Trade-Q1

Name: Rohan L. Mercado Year/Section: BSA-3A Date: August 29,2021

Discuss:

1. What is your understanding of International Trade? What makes International Trade

necessary in the sustainability of nations?

Answer: International Trade is concerned with the exchange of goods, services, commodities,

and other resources from one country into the other. From these definition we can already

established that International Trade is deed necessary for the sustainability of Nations .Several

reasons are , because all nations varies in terms of resources that they have in their lands and seas

and also intellectual resources from its people that is why with trades involving other nations,

these resources will be allocated to the rest of the world and other nations can have access to

those goods that are not present or they lack in their countries. Also, since nations can

specialized on goods or services that they have absolute and comparative advantage of, they can

focus on those products to increase their standard of living. Another reason is that, since one

country can outsource products from other nations, it can create employment opportunities to

both the manufacturing country and to the purchasing country as well as sharing of knowledge,
skills, and technology among trading nations. In addition, as various resources are made

available to different countries, it makes a numerous choices and preference for consumers that

promotes competition and giving a number of reasons for producers to ensure good qualities of

products they offer.

2. Should the Philippines play an active role in bringing its products and services to the

world? Why so or why not? Explain.

Answer: In my opinion, Philippines should really participate more in marketing it’s products

internationally although the country is already involved in the global market, I think we still need

to give more attention to resources that we can offer to the world ,like agricultural products but it

seems that we upheld industrialization so much to the point that we were converting our

agricultural lands into commercial areas which is good but apart from that, the importance and

value that our farmers deserves aren’t sufficient for the agricultural sector to be sustainable that

is why even we are an agricultural country, we even imports other agricultural products due to

low supplies . Another reason is that, like what I have mentioned above, it creates employment

and sources of income to our people when we manufacture goods and even exports manpower

through our OFWs. It is also a way for the world to recognize Philippines and its products and

create more investment and trading opportunities to the country.

3. During these very hard times because of the Pandemic, how is International Trade

affected?

Answer: During this pandemic, International trade is largely affected, unbelievable amount of

income and investments are lost to each nation as well as drastic expenditures and huge debts are
incurred to cover and support every nation’s needs. It freezes and crashes global markets, major

exporters and importers like China which is the focal point of this pandemic, stops trading and

exporting products to other countries like the USA. Some first world countries that are highly

dependent on materials and resources provided by other countries were really affected in their

economy but lucky on those advanced countries that they can recover quickly and can sustain

themselves during this pandemic whereas unlike those developing and less developed countries

which are the not self sufficient and are really suffering in this pandemic, not just economically

speaking but also risk that are attached to the people since they have no choice but risk going

outside just to find necessities for survival.