System Doesn’t Need WTO
Adoption of the system will cause economic
autarchy, i. e. nearly all products will be produced
domestically as the market demands. The country will care very little about
international trade and international trade might cease for the countries that
adopt the system. This is due to the consumers acquiring the products ‘free’
whereas imported products require acquisition of foreign currency. Exact
products, that were previously imported, might not be produced and substitute
products may be used.
This may cause a ‘domino’ effect. The
exporting countries will cease exporting to the country that adopts the system
causing localized or general economic ruin. Upon seeing the effects of the
system, the exporting countries will (or be forced to, from economic and
political pressures) adopt the system and resume exporting products to their
previous customers.
Another way of acquire ‘imports’ could be
that a firm produces a product desired by another area and barters their own
products for demanded imports and provide to domestic consumers.
The cost of producing these products is
‘opportunity cost’, resources employed that could be utilized elsewhere to
produce other products. Every person employed producing certain products, will
be unable to produce other products, regardless of the need or want for them.