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Positive And Negative Effects Of International Trade

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Thesis Statement: I strongly believe that the countries have been changed positively over many decades because of international trade. I chose this topic (Trade and Aid) because many people in the world are trading goods with other countries in order to earn money. Trade can be defined as the action of buying and selling goods and transferring of resources with other countries. It is a really important topic to investigate because there are some people in the world who don’t know what are the goods that can be traded with others. Trade can really be important to us in order to live and fulfill our need. By doing research, I can discover the importance of trade; the materials people are trading between countries and what is the difference …show more content…

Some positive effects according to the businessman can be that “free trade or trade without any restrictions allow firms from different sector of industries in various countries to specialize, in the safe knowledge that they would be able to export their excess produce, in producing goods where they have the most comparative advantage or the least comparative disadvantage.” This increases efficiency as firms are new able to divert resources, which have alternative uses. Some negative effect may be due to dumping. According to World Trade Organization (1), the application to international trade of the discriminating power of Monopoly is called dumping. “When firms expand, they achieve economies of scale, which increases their competitive advantage by increasing efficiency their ways of allocating resources, reducing the average costs of their produce. This enables such firms to sell their products at a price lower than that of the domestics firms in a country that has engaged in international …show more content…

According to them that is an increase of $2.90 billion. As stated by Economy watch content, Myanmar does not have good relationship with western countries. Due to this reason the US does not import anything from Myanmar and the Australian and the European Union have also force on the country for restriction the import of certain products. (1) From the national perspectives, there have been many changes in last 10 years people have seen over trading. For example, Myanmar has recorded, as a trade shortage of $798 million in January of 2017 while it was only $770.60 in last

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