Self-Sufficiency and Trade/Whether or not it would be feasible for Ohio to stop trading with surrounding states

Essay by happy_bubbles September 2007

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Self-Sufficiency and TradeThe only society that comes to mind that was self-sufficient many years ago were American Indian tribes. They had no others to depend on, so they depended on themselves to provide only the basic needs to survive. I do not believe that any one individual can be self-sufficient.

If Ohio were to stop all trade with surrounding states, our economy would change dramatically. We all depend on goods and services that others provide. Without trade, prices would skyrocket. Would our unemployment would decrease? I do not believe so; what we fail to take into consideration is that education and training for 'new' jobs would have to come first (a hidden cost). And for items such as peanut butter and bananas, well we would have to learn to live without them for a long, long time. If Ohioans were to exist only on goods and services provided within the state, we would be wearing fur, leather, woven reeds, and no cotton.

What about the need of prescription drugs, are we ready to harvest willow bark in exchange for aspirin?Other considerations such as supply and demand would also need to be considered. If we were to consume only goods produced in Ohio, supplies would decrease and the demand would increase, therefore prices would increase as well, Wal-Mart would be rolling prices forward to cover the new higher costs of production for things like clothes and produce. This would be the case with every retailer, including the farmer.

I do not believe any 'good' would come from Ohio refusing to trade with other states or from a global environment. Trade creates efficiency among all that participate. Trade allows a variety of goods and services to be enjoyed by all; society benefits from the skills of others, therefore a comparative advantage.

**Classroom assignment based on our opinions