international trade to developing countries?

Question

what is the importance of openness to international trade for a developing country's economic growth?

Answer 1

The answer lies in the benefits that trade provides to a country. A country is better off if it directs its resources to producing goods in which it has a comparative advantage and selling those goods to other countries. A comparative advantage exists when a country can produce a good cheaper than another country. This happens because the country may be blessed with a certain natural resource that another country may not have. The country is also better off it it imports goods produced more cheaply in other countries that if it tries to produce them itself. In this way the country can gain from trade and can use its gains (usually by way of foreign exchange earnings) to finance its growth and development.

Answer 2

International trade is very important for developing countries as it helps their economical growth. In other words international trade is one of the most crucial elements in the economic growth of a developing country. Also it contributes to the liberalization of the global market of agriculture. Thanks to international trade developing countries can participate in the trading system and global economy. International trade is possible due to international shippers and websites which are specialized in international trade. One of these website is Export Portal an online export/import portal for international buyers and sellers. Export Portal is a trading site which operates worldwide and deal in all kinds of products for sale: from food, beverage, to textiles, clothes, shoes, bags, etc.