ALL MEN MUST TRADE

Let us consider a hypothetical world, in which a certain country named Winterfell is surrounded by countries Casterly Rock and Highgarden, both of which had carved a special niche for themselves in the International Market, thanks to their geographical location and intelligent techniques of harnessing the nature-endowed resources. Casterly Rock and Highgarden had therefore started competing with other international players.

What entailed from this competition was substantial economic growth for the other two. Despite being endowed with almost similar gifts of nature, Winterfell was left behind due to its inability to harness the available resources in an intelligent and sustainable manner. It maintained almost zero trade relations with others.

As time passed by, slowly and gradually Winterfell began realizing the importance of mutual cooperation among nations and opened up, and hence it started to tread on the path of positive growth. In a matter of few decades it was able to compete with some of the greatest international players.

The growth of Winterfell was something which could never be accepted by Casterly Rock and Highgarden as being the new normal. Winterfell was able to sense this growing feeling of discontent among its neighbours and going by apprehensions of something bad which may happen in near future it developed a robust defensive force which was capable enough of countering any future mishaps.

Amongst the two neighbours it was Casterly Rock which was desperate enough, resorting to sabotage and insurgency which created impediments, deterring Winterfell from scaling up the trade numbers. This strained relationship escalated into a full time war which was a tremendous shock to the two growth trajectories. However, Winterfell’s defence was capable enough to counter the enemy effectively. Though tremendous, the impact of the war was reduced substantially.

While on the other hand Casterly Rock was shattered. The trade numbers were plummeting as international repute was disturbed and what resulted was a phase of deep agony amongst its citizens. Seeing people fighting and dying for their countries people of other nations also began to develop a bigger degree of responsibility and sense belonging for their nations.

So, it came as no surprise that they took steps to confining their produce and labour, which essentially was closing of their economies. Winterfell and Highgarden however, benefitted a lot from international trade and so despite intense internal pressure they kept their borders open for international trade.

Going by its dream to capture the globe (assuming the imaginary world to also be a sphere) Winterfell began intruding in Highgarden’s internal affairs. Infuriated with this intervention Highgarden was getting forced take harsh actions against Winterfell. However, Highgarden was foresighted enough to sense the international situation; seeing other markets closing for trade, it saw in Winterfell a market with enormous potential.

Facing intense pressure from other members in the international community Winterfell was forced to allow Highgarden to trade in its markets and scale up its numbers. The trade deficit kept on growing in favour of Highgarden which took leverage of its previously established position and reduced Winterfell to a mere importer of its goods.

To scale up its growth digits is a dream of every nation. To grow and get out of its production possibility frontier everybody has to trade. Trade can either make a nation go upwards or downwards its existing production possibility frontier.

What, therefore, is important, is a thorough understanding of the existing phases and an ability to direct oneself in the correct direction. The story describes how different reactions to the same human feeling of discontent produce significantly different outcomes.

- Siddharth Gupta