International Trade & Trade War

Decoding Global Trade Dynamics: MG Dr. Budi Pramono's Riveting Session on 'International Trade & Trade War 

Jakarta, October 12, 2023 – The increasingly complex dynamics of international trade took center stage in an international class lecture held by one of Jakarta's leading public universities. MG Dr. Budi Pramono, SIP., M.M., M.A., (GSC)., CIQaR., CIQnR., MOS., MCE.,CIMMR, with his impressive credentials, provided an in-depth presentation on "International Trade & Trade War."

In his lecture, Dr. Budi Pramono elaborated on how nations interact within the global trade landscape and how trade conflicts can arise from protectionist actions. He also explained fundamental concepts of international trade such as the theory of comparative advantage and how trade can boost global output, diversify goods and services, and promote economic growth.

Furthermore, he touched upon the implications of protectionist policies, like tariffs and quotas, and how they can trigger trade wars. In his discussion, Dr. Budi Pramono emphasized the importance of diplomacy and negotiation as more effective tools than trade wars to resolve trade disputes.

The attending students appeared highly enthusiastic. All students were active in the discussion session, reflecting their deep interest in the material presented.

This lecture not only provided academic insights but also enlightened students about the importance for Indonesia to understand and adapt to the rapidly changing global trade dynamics.(MA)

Trade Wars and International Trade: A Deeper Dive

Trade wars, as described, arise from tensions between nations over perceived unfair trade practices. This economic face-off can have profound implications, not just for the involved countries, but also for the global economy at large. It is pertinent to understand the principles and theories that underscore these complex international dynamics.

Adam Smith and the Theory of Absolute Advantage

Adam Smith, the Scottish economist and philosopher, is often referred to as the father of modern economics. In his seminal work, "The Wealth of Nations" (1776), he introduced the concept of absolute advantage. According to this theory:

International Trade: The Bigger Picture

International trade, as highlighted, revolves around the buying, selling, or exchanging of goods and services across national borders. Here's why it's crucial:

Challenges Ahead

While the theory of absolute advantage makes a compelling case for free trade, real-world trade dynamics are more intricate. Relative advantage, trade barriers, geopolitics, and national interests can complicate trade relationships, leading to situations like trade wars. It's essential for policymakers to navigate these complexities carefully, balancing protectionist instincts with the broader benefits of open trade.

(Source: Lecture material from the international class DEFENSE DIPLOMACY PROGRAM, REGIONAL AND GLOBAL SECURITY: International Trade & Trade War, October 12, 2023.)