what is the importance of international trade?

Answer 1

International trade allows countries to take advantage of something called comparative advantage. Comparative advantage means that a country is able to produce something by giving up less of something else. Thus, even if a country is not the absolute best producer of anything, comparatively they can produce a good product without giving up as much of something else. When countries take advantage of comparative advantage, total world output increases, and everyone benefits from the extra output. Thus, international trade helps establish a higher standard of living.

Answer 2

countries can trade goods that they can make a lot of for goods they need but cant make as fast or cant make at all.

country A makes 1 car, 2 tires/hour

country B makes 4 tires, .5 cars/hour

it would be beneficial for them to trade with each other......this is a poor example but its something for you to be able to conceive