Advantages and Disadvantages of International Trade

Authors Avatar by magnificentoreox (student)

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. Next, the international trade makes better international relations with other countries as well, by trading/exporting/importing things with other countries, both sides would work harder and together.

Join now!

Other than that, it would speed up the industrialization where this international trade enables a country to acquire a skill machinery and other capital equipment from industrially advanced countries for speeding up the industrialization. In addition, there are also extension means of transport such as where the goods are exchanged from one country to another it leads to an extension of the means of communication and transportation.

Next, international trade could increase the standard of living because when more production meets demand worldwide, the higher the production, the higher the income and the higher the standard of living and ...

This is a preview of the whole essay