If countries were completely self-sufficient and trade between them ceased, the global economy would undergo drastic changes. Firstly, the diversity of goods available to consumers would significantly decline. People would only have access to products that are produced within their own country, limiting choices and potentially increasing prices due to a lack of competition.
Furthermore, countries would need to allocate all resources to meet their own needs, which could lead to inefficiencies. Some nations might be better suited for producing certain goods due to their natural resources or climate, which means they could produce these goods more efficiently than other countries. Self-sufficiency in such cases could result in lower overall productivity.
In the absence of trade, innovation might also stagnate. The exchange of ideas and technologies often happens through trade relationships. Without this collaboration, countries would have less incentive to innovate or improve their production methods, which could hinder economic growth.
Another significant impact would be the economic hardships faced by countries that rely on imports for essential goods. In a self-sufficient world, those countries might struggle to sustain their populations without the necessary resources or products they can no longer obtain from abroad.
In summary, a world without trade would lead to limited consumer choices, inefficiencies in production, reduced innovation, and the potential for increased hardship in resource-dependent countries. Overall, the global economy would likely suffer due to a lack of cooperation and exchange.