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.

 

 

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