Global trading network nowadays

Nowadays, the global trading network is becoming more and more complicated as there are more and more different sectors interacting with each other. The cost of production is no longer as simple as the cost for buying raw materials and hiring labour force; nowadays, costs of production involve costs of financing, taxes, tariffs and other factors. As specialisation has become more detailed, more and more individuals, parties, companies, organisations and countries have been involved and participating in the global trading network, sometimes even without their full realisation. Therefore, under current globaling trade situation, it is impossible to start a trade war that only involves two countries. Once a country brings another country to a trade war, all other countries which are trading with either of these two countries are also brought to the trade war involuntarily. Moreover, if the two main countries in the trade war are very large economies, the trade war could have much larger side effects and some of other economies which are relatively smaller could be harmed even worse. Large economies are large does not only imply their economies' sizes are large, but also imply their industries and sectors are more various and comprehensive and they have more trade partners; on the other hand, small economies are more likely to have relatively limited scale of industries, their resources are more often concentrated in particular sectors, their trade parnters are also more limited. Therefore, once there is a trade, of course in terms of absolute losses due to the trade war, the losses of the two main characters defintely will be the largest; however, in terms of relative terms compared with the entire sizes of economies, the small economies which rely on trading with the two main characters in the trade will lose the largest relative losses due to the trade war. Moreover, nowadays as the global trading network is much more complicated, it is impossible to contain a trade war in a designed scale. In the current world, when making global trading, a company does not conduct this activity by itself, it has got to gain support from some financial institutions to give it some advice on taxes and even direct and indirect financial support, once a sector has been in the danger of trade war, all financial institutions backing this sector and other supporting sectors will also be under threat of a trade war. From this point of view, a limited scale of trade war does not exist any more.