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Short Summary: The Benefits Of International Trade

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1. The benefits of international trade:
Encourage a nation's economy progress: International trade allows a country to utilize its resources to the highest extent. Moreover, different countries possess different kind of resources, so some countries can manufacture and offer same goods at the cheaper price (Heakel, n.d.). In addition, international trades also help to sell the surplus products in domestic market to foreign market which prevent price falling in home market (Patel, n.d.). Lastly, companies can source cheaper and/or better raw materials from import making them more sustainable and profitable.

More choices & competitive price: Monopolies or oligopolies are reduced in certain industries because international trade encourages greater competition which leads to more competitive prices. Consumers not only have the access to the new products or services that are not available in their country but also they get bigger bang for the buck ("The benefits of international Trade,” n.d.).

Some negative aspects of international trade: …show more content…

If the international trade is not properly controlled by local government, it could ruin their domestic industries that aren't unable to compete efficiently and as the result, jobs will be lost. Moreover, overspecialization can occur where too many substitutes presented, leaving the market in surplus situation (Patel, n.d.). In addition, import of harmful commodities can seriously harm the health and morale of the people (Patel, n.d.). For example, import of opium, drugs, cigarette and

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