Some important benefits of International Trade 1. Outspread sales possibilities of the existing products – having an international trade supports the traders to have an extended consumers from overseas. Especially these days, the use of internet aids link both companies and possible clients to have an arrangement that results to an extended sales from a current products. 2. Preserve cost competitiveness in your domestic market and increase efficiency – Because of global competition, the manufacturers in a country try to produce superior quality goods and at the least possible cost.
In the contemporary society, there are an increasing number of people involved in the globalisation. I choose the topic of international trade. And in the following paragraphs, I am going to introduce what is international trade, other possible benefits of trading globally and the bottom line. (Heakal 2015) Thanks to the international trade that allows us to expand the market for goods and services. And also, as a result of international trade, the market contains greater competition with more competitive price and cheaper products.
Countries trade with each other to obtain things that are better quality, less expensive or simply different from what is produced at home. What are the benefits of international trade? To become wealthier, countries want to use their natural resources ï¿½ land, labour, capital and entrepreneurship ï¿½ in the most efficient manner. However, there are differences among countries in the quantity, quality and cost of these resources. The advantages that a country has may vary according to the following.
International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.
The gains from globalization increase net income in many places and facilitate decreases in levels of poverty and thereby increase levels of food security. A study on the globalization of food, points out that food systems are changing, resulting in greater availability and
Globalization has contributed in important ways to the worldwide growth of economy, politics, technology, social and culture of various countries. Globalization is a relative new term used to describe a very old process. Therefore, globalization is the simply the integration and development of the globe. This short literature consist of three parts; the benefits of globalization, the effects of globalization on government and the people of the pacific and finally the ways in which the adverse effects can be mitigated or solved. I.
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.
• What are the benefits of international trade? What are some negative aspects of international trade? International trade has advantages and disadvantages. On the one hand, it opens the market to all sorts of products, which in turn raises the competition between the local and the international producers; and on the second hand, it gives importers advantages to import different products, and it gives the consumer a wide variety of products, and different options to choose from. It can be a challenge for a better quality, lower prices, and a wider range of products.
It has also spurred industrialization, technological progress, outsourcing and global value chains which in one way or another have an impact to international trade. International trade has become one of the important factors in promoting growth and development for most countries. International trade has opened chances for countries to diversify their economy through getting experience and access to new technologies and commodities which enhances efficiency for country’s production and thus improving their GDP. It is important to know that a current trend of trade does not much involve the exchange of finished products and raw materials i.e. cloth and banana, rather involve a movement of finished and intermediate products which add value to commodities.
Since, every country has to import, which results in outflow of foreign exchange, it also deals in export for the inflow of foreign exchange. 8. Promotes World Peace- Foreign trade brings countries closer. It facilitates transfer of technology and other assistance from developed countries to developing countries. It brings different countries closer due to economic relations arising out of trade agreements.