Benefit Of International Trade Essay

According to Halsbury’s Laws of England the word trade means (a) exchange of goods for goods or goods for money, (b) any business carried on with a view to profit, whether manual or mercantile, as distinguished from the liberal arts or learned professions and from agriculture. It can be also defined as any trade, business, industry, profession or occupation relating to production, supply, distribution or control of goods and includes the provision of any services. The trade across the borders of the countries has been carried on since times immemorial. International trade can be described as the sale of goods with international element. This element could be present due to the fact that the seller and buyer are established in different countries,

The merits of international trade is that it promotes growth and enhances economic welfare by stimulating more efficient utilisation of factor endowments of different regions and by enabling people to obtain goods from efficient sources of supply. It also makes available to people goods which cannot be produced in their countries. In addition to this it increases real incomes and consumption which in turn leads to expansion of employment and out-put and fosters economic growth. Liberalised trade is responsible for much of the reduction in global poverty. Countries that have embraced liberalised trade policies and increased trade have reduced poverty at a far greater rate than those countries which have maintained high barriers to trade. International trade in food is as old as nations. Ever since nations existed, they have exchanged food and other agricultural products. This trade in agricultural products provides clear economic benefits. Food and other products have become cheaper and the choice of products available has expanded considerably. International agricultural trade in general has grown significantly and this growth has been marked by an increasing inter-dependence of national economies seeking greater efficiency in the production and marketing of agricultural