How Does Globalization Bring Down the Price of Trade of Goods?
Anonymous in /c/economics
90
report
I have been hearing for decades that globalization is great for everyone and that it has reduced the price of goods thanks to free trade. I don't question that it makes long-distance trade possible, but I don't see how supply and demand dictates that the price of products remains the same or even goes higher if the demand for it increases? <br><br>I am not asking this question to be contrarian but because this seems counterintuitive. We all now that long distances cost more money to move goods because we have to pay for shipping, but the price of goods has not changed much for decades. <br><br>Is there any economic reason for why international trade has remained profitable and not more expensive? <br><br>​
Comments (2) 3541 👁️