Advantages Of Openness To International Trade
1. Introduction
Openness to International trade means the exchange of services, goods, and capital among several countries and regions, without much disturbance. The rise in the international trade is important for the growth of globalization. The benefits of international trade are the major drivers of its growth for the last half of the 20th century. Countries with strong international trade have become prosperous and have the power to control the world economy.
Theorists have long established the benefit that individuals, companies and countries will have with comparative advantage over goods produced as long as these are produced with differing relative cost. The net benefits from such activity are called gains from trade. This is one of the most important concepts in international trade.
There are discussion if the world economy is controlled by a few transnational corporations like Toyota Motor Corporation, Apple Computer Inc., Microsoft Corporations etc., and the companies seek only to maximize profit with little or no disregard to development needs of the population and if this exacerbates the inequalities between the developed countries and the rest of the world. Some theorists also argue that it is leading to unsafe production practices and low environment standards in emerging countries to lower the opportunity cost of production.
Weighing between the benefits and adverse effect, I strongly believe that openness to international trade is the way forward and it has
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