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The Pros And Cons Of International Trade

1494 Words6 Pages

International trade displays an important role in the economy in every state. It can help developing countries increase current supply and demand. International trade means exchanging goods and services across national borders by transportations. Each country can use limited resources to produce a set of limit products and services to citizens, in this case international trade can import what domestic are lack of and export what domestic are excessive. International trade gives companies an opportunity to open new markets in global and provide a better goods and services choice for people (Wild el al, 2008). However, when domestic companies searching for international market they will face some trade barriers. Those companies need to find the solution based on the trading theory to solve those trade barriers before entering the international market.
International trade and practices
International trade can identify as a zero-sum game and it also represents the GDP of each country. International trade is different country import what they need and export what they had all around the world (Abedini, 2014). Free trade is supported by the two theories of Absolute Advantage and Comparative Advantage.
Free trade is where the countries import and export are free to trade compared to original trade or being the member of the World Trade Organization. Free Trade allows companies to escape the trade protectionism which set up by the government. However, Free Trade will lead to

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