With the help of modern techniques, u to date procedures, cntemporary practices, gobalization and highly advanced transportation system, te International trade system is spreading really fast. i today’s world International trade is important for meeting the needs of the country, nt every country can produce all that it wants so in order to meet their needs and demands the trade takes place. Iternational trade can benefit the economy of the country by expanding the local market and increasing the variety of the goods and services available. Iternational trade is basic source of bringing “FOREX” in the country.
Trade often increases competition and it helps in reducing monopolistic pricing and the cons that generate from that. I encourages local investors and manufactures to perform better and keep stable pricing in the market. Iternational trade is one of the major sources of revenue for the country. B doing more exports and fewer imports the country can actually achieve economic stability. iternational trade can help reduce local dependence on the existing companies and international trade can even help stabilize seasonal market N matter the level of the development of the country there will always be some specific products that other countries must be producing at a cheaper rate, i order to make maximum use of minimum resources the country import those certain goods, Te are produced at lower marginal costs, tis help countries save and stay in their budget, tis concept is known as the “Comparative Advantage”.
International trade is one of the best examples of Globalization. I spite of all these benefits international trade has certain diverse affects the economy as well, wich are often argued by the economists for example, I certain cases this discourages the local manufactures and proves to be unjust for them.
Fr example, alocal manufacturer produced 500 shirts and they are available in market for $ 40 each, were as someone imported 500 shirts and the marginal cost of each shirt was lesser than the local manufacturer because of Comparative Advantage and hence the imported shirts are available for $ 30 each in the market. Bcause of this the local manufacturer will great loss and might get discouraged.
Mny economist argues that International Trade can sometimes increase your expenses for...
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