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Essay Benefits Of International Trade

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International trade is made possible through the facilitation of buying and selling goods across national borders. This has been made easier due to improvements in transportation, communication, financial services along with economic and trade co-operation among nations. The international trading of goods and services is the core of many multinational firms operations and industrial producers no longer produce goods to satisfy their domestic market only. It is not possible for each country to produce all the goods and services demanded by local consumers, therefore international trade and trade openness is very necessary and important.
Countries engage in trade because they either cannot produce a good cheap enough or they are not endowed with the resources to do so. According to the Ricardian model, small …show more content…

The Jamaican consumers benefit by having access to a wider variety and more choices of goods, cheaper prices, higher quality and better technologies, which increases domestic consumption. The domestic consumer also benefit from the increased competition that international trade brings, as local producers are required to become more efficient, cut cost and improve their product offerings.
While international trade has many benefits, it can also have damaging effects for domestic firms and producers, as they may be unable to compete against imported goods and need government intervention to offer some kind of protection. It may be necessary for government to get involved in order to protect and save domestic industries. Intervention usually comes in the form of trade policies that are used as tools to restrict imports. These may be tariff barriers or non tariff barriers such as quantitative restrictions. These are the said intervention measures that give rise to import under

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