Can anyone pls tell me what are the advantages of international trade between countries?

Question

I have an essay on international trade benefits,the main things that need to write about is the reasons for an international trade.Pls help me ASAP bc I can't find anything on internet,and also I don't have any ideas about this problem..Thanks in advance!!

Answer 1

There are potentially many gains in economic welfare to be achieved through free trade:
- Greater choice of products for consumers
- Increased competition for producers
- Other countries can supply certain products more efficiently
- Trade speeds up the pace of technological progress and innovation
- Businesses are better placed to exploit economies of scale
- Political benefits from expansion of global trade

The theory of comparative advantage can show these gains from trade. Try the link below and searching for terms like "comparative advantage".

Answer 2

There are actually some people in the economics section that understand economics. Kudos.

Let me expand on the most important advantage in my humble opinion:

"When goods do not cross borders, soldiers will."
-Frederic Bastiat

With free international trade, war between nations would be rare. War would result in the destruction of both economies regardless of where it was fought. Even most crazy dictators do not want that.
The US government and Communist Chinese government are not exactly bosom buddies. There was the constant threat of nuclear war with the last huge powerful communist country (Soviet Union). With the US and China, while we may not be best friends, no serious person will say war between us is remotely likely at this point. The Chinese government behaves more capitalistic than some European nations.


Free international trade makes a countries' citizens wealthier, therefore, fewer civil wars.
>Most of the civil wars taking place right now are in Africa, where free trade and cooperation between nations does not exist in many regions.
>You won't spend your time killing each other while you could all be making more money. Religious wars maybe, but not for economic reasons.

That's my two cents.

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Answer 3

Seriously, you need to look harder and when you do an internet search don't give up after the first 3 results. That is one of the most written about topics out there.

As for your paper, try this - think about the situation North Korea is in, isolated both because of the rest of the world and because of its own leadership. Everyone's pretty pissed off at NK and that country is on the verge of total economic collapse. You get the picture now. Feel free to use that example as an opening for your paper - it'll grab attention quick and you'll probably get extra points just for using an example out of today's headlines.

Answer 4

The most basic advantage is that the average person in both countries is better off with trade then without.

Do a search on 'comparative advantage'.

Answer 5

There are two sides to the issue, hon. The most significant is the effects on the quality of life. Try this site...http://www.freetrade.org/faqs/faqs.html

You need to know that it is a very heated debate and there are factors well beyond economics to consider.
Ever heard of sweatshops...? Check this out...http://www.sweatshopwatch.org/index.php?s=36

Answer 6

1. To transfer general technology.
2. To enable consumers to purchase abroad commodities more cheaply than they can be produced domestically.
(source for quotes above is listed first below on list of sources)

Check out for some articles listed here too

Answer 7

listen to the first guy. great answer. kudos to you sir.

and to the lady who said that there are more things to consider than economics, you are wrong. international trade is built on economic theory, its all about economics.

Answer 8

international trade helps developing countries to get modern technologies from developed countries .
it also helps entrepreneures to manufacture goods in one country and sell them in other countries.