Economics of International Trade - Essay Example

Changes in the international trade influenced by the inequality International trade patterns have tremendously changed in the past twenty years. The main reason for the changes in the international trade was the differences that came up due to the changes in the imports and exports form the developing countries. International trade was mainly based on the imports of manufactured goods from the developing countries (Ebenstein , Harrison   McMillan & Phillips p. 1). The chances in the imports and exports in the international trade affected employment in the countries.

That is the control of trade during this time led to problems in employment. The sale of the imported goods from the developing countries was high that most of the manufacturing companies lowered the wages for their workers. Most of the manufacturing companies were experiencing difficulty in trade because of the low sale of the manufactured goods. That is the export level was much lower compared to the exports. Most of these companies began hiring people that were not trained and other unskilled labor.

Other factors that affected international trade in the United States is the rise in inequality due to the skill differentials.The international trade differences are what led to the rise in inequality in the payment of wages and employment in general (Ebenstein , Harrison   McMillan & Phillips p. 3). The countries that had low income wages were producing more manufactured products compared to the manufacturing countries that based their labor on skilled workers. This is because most of the manufacturing countries with low wages had more employees and could manufacture more goods compared to the latter.

History has recorded that the rise and the fall of the income trends have been affected by the rise and fall of the international trade. As most of the manufactured goods come from the developing countries, trade seems to have favored the developing countries. For instance, due to the fact that the developing countries export most of the manufactured products thus has trade favored these countries. The fact that has led to inequality is because of the employment in these countries. Because the export many products, they also employ many employees compared to the other countries.

This has in turn increased the inequality in trade in the international market. The changes in the payment of wages have also influenced the pricing of the good in the international market. As a result, the changes in the wages have also become a contributing factor in inequality in the international trade. It is true that the inequality that is on the international trade has affected the buying and selling of imports and export since 1990s. However, it is upon the people that are on the lead in the trade industry to change their business manufacturing strategy in order to improve their trade chances.

For instance, the countries that have high wages should consider ways of neutralizing this factor so that they can reduce the pricing of their exports. Thus, improve the trading chances on the international platform. It is evident the some countries have had less opportunities in the international market due to the rise in inequality in the trade platform. Thus, it is fundamental that such countries also get a chance to receive their market share. Work citedAvraham Ebenstein , Shannon Phillips, Margaret McMillan , and Ann Harrison .

"International trade, offshoring, and US wages." VOX. N.p., 31 Aug. 2009. Web. 8 Feb. 2012. .