• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Advantages and Disadvantages of International Trade

Extracts from this document...


´╗┐INTERNATIONAL TRADE. In the economics term, International trade is the exchange of capital goods and services internationally. International trade includes other countries working with one another to stabilize their economy system in their own country and also getting benefits from other countries. Before working on with this trade, it has some advantages and disadvantages. Firstly, the advantages for international trade is that the economy in the use of productive resources whereby each country tries to produce those goods in which it is best suited. As the resources of each country is fully exploited, there is thus a great economy in the use of productive resources. ...read more.


Besides that, there is also a greater variety of goods for consumption which gives consumers a wide variety of choices such as consumer or capital goods when it comes to trading with one another. Another advantage is the sharing of technology where the countries who are working together could share their technology with one another for example The United States and Malaysia where the United States has higher and better technology. However, there are also disadvantages for the international trade. Even though both countries could work well together but one of the problems is there could be a language barrier between both countries, for example Japan and Malaysia. ...read more.


In addition, when there is a time of emergency in any of the countries such as war and the country which specializes in the production of those commodities in which it has comparative advantage over other countries and the country may not be able to get essential supplies thus the whole economy may be crippled. Other than that, it may lead towards a long distance trade, sometimes international trade may be difficult to maintain the close relationship between the seller and buyer because of the long distance between both countries. In conclusion, international trade maybe useful at most times but has disadvantages at the same time as well. However, international trade is still widely used by all countries in the world because most countries need to depend on one another to get the things they want. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    This is, of course, easier said than done, for institutional reform - enforcing property rights and contracts through impartial, effective judicial systems, improving systems of public administration, improving education and health care, rolling out transport and communications infrastructure - must be seen in the context of financial, technical and other constraints, with wide variations across developing countries.

  2. International Trade - I have been asked to investigate the possibility of a company ...

    the import price plus the tariff then the tax will be relatively ineffective. Quotas A restriction, which is physical on the number of products that can be imported. For example in the 1970's and 1980's there was a restriction on the number of vehicles that could be imported.

  1. Critically evaluate Brazil's International Trade Policy in terms of key trade issues and primary ...

    the use of Brazilian inputs in exported products.As one of the world's major producers and exporters of agricultural products, Brazil direct price supports or input subsidies provided to farmers for domestic production in an effort to protect them from foreign unfair competition such as dumping goods at extremely low prices.After

  2. International trade - In this case I choose the country Canada. When doing a ...

    It describes the differences between families with a high, low and middle of income distribution. In 2000 the highest deciles of a family income was above the $ 117,849. The lowest deciles income was lower then $ 18,991. For the whole table of the 10 income deciles, you can find it in the enclosure on page ...

  1. What as the impact of China's re-engagement with the international community been on its ...

    However, due to cheaper labours and the availability of natural resources, China can export similar products ,as Southeast Asian Countries, in lower prices which can help it gains more access to other markets (Fred 1991: 435). In this case, Southeast Asian countries should focus on the comparative advantage rules and the economic of scale.

  2. Comprehensive Anatomy of China

    Eventually armored troops stormed the city center killing numerous defenseless civilians to put an end to the demonstration. Although the Tiananmen Square incident hurt the country's foreign relations to some degree with time, ties were mended. Throughout the 1990's China's international reputation greatly improved.

  1. international trade

    The country with many workers but little capital, on the other hand, can produce many pairs of jeans but few cell phones. According to the Heckscher-Ohlin theory, trade makes it possible for each country to specialize. Each country exports the product the country is most suited to produce in exchange for products it is less suited to produce.

  2. Globalization describes the ongoing global trend toward the freer flow of trade and investment ...

    All of the national economies of the world are interconnected now through their dependence upon each other for trade. Problems anywhere in the world economic community, with Japan and Argentina being recent examples, create economic problems for nations all around the globe.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work