Believe it or not, it would be very difficult to have all of the different materials that we use in everyday life. Not only that, but many different countries would not be able to have all of the great economic success that they do if there was no international trade. Poor countries such as Africa would not be able to have any money at all if they did not have international trade, and great countries such as China would not be able to provide us with the majority of materials and products that we use if there was no trading system in place.
All countries around the world would suffer if they did not have international trade and England and America are within these countries. The benefits are money, materials, growth and power, if a country does not have any international trade it would not have relations around the world and therefore wouldn't have a place on the world stage next to all of the superpowers.
Countries which rely heavily on international trades are going to suffer is the system is stopped and therefore the whole world would suffer as a result. As not all courtiers have the same resources the same foods and materials cannot be grown and therefore everyone is going to suffer and miss out on everything that they need to ensure that their country can continue to grow and provide its population with everything that they demand and need.
You can be sure that without international trade you would not have most of the foods that you love and most of the technological devices that are within your home. The benefits are endless and it involves the whole world so communications and relations between countries can be built upon and improved.
-->Enhances the domestic competitiveness -->Takes advantage of international trade technology -->Increase sales and profits -->Extend sales potential of the existing products -->Maintain cost competitiveness in your domestic market -->Enhance potential for expansion of your business -->Gains a global market share -->Reduce dependence on existing markets -->Stabilize seasonal market fluctuations
1. Increased world wide output 2. Goods and services produced at lower cost 3. Greater range of commodities for consumers 4. Overall increase in standard of living
International trade means exchanging goods and services across international boundries. In international trade, goverments and other organisations may impose restrictions on what goods can come and go out of the country. This may be for a number of reasons. There are disadvantages for international trade like when one country is importing goods the emerging domestic company in the local market loses out and is disadvantaged. However where there are disadvantages, there are also benefits and some firms believe that benefits outweight the costs of international trade.
International trade gives the firms a large platform to introduce their goods ans services. They have access to a larger market enabling them to take a greater advantage of economies of scale. They will be able to purchase raw materials and other component parts more easily and more cheaply. It is not only the producers that benefit but also the consumers. They can purchase goods from other countries in their local market . They have more variety to choose from. Because of competition each consumer will benefit from low priced better quality products. International trade increase world output.
It creases world output, it improves the living standards of people, it create competitiveness between local and foreign industries, it create a variate of goods and services to the consumers, goods tend to be cheap and quotable.
Enhances the domestic competitiveness Takes advantage of international trade technology Increase sales and profits Extend sales potential of the existing products Maintain cost competitiveness in your domestic market Enhance potential for expansion of your business Gains a global market share Reduce dependence on existing markets Stabilize seasonal market fluctuations
Balaji 2nd M.B.A PET Engineering College, Vallioor, Tamil Nadu, India
Trade is beneficial for both countries that are doing business internationally. There are many international trades which are carried on the exchange policy. If a country who is producing something good and which can sell to the counties who are not capable for producing such type of products, then they can exchange with those products which cannot be grown in the home country. For example, if we look at Iceland they cannot produce oranges, but they are rich in producing fish so they can exchange fish from oranges by the country who are willing to carry the barter trade.
So in this way both counties get what they want and they earn revenue as well, so these kinds of trades are good between the countries and they execute business in the same way. So if the country is lacking in mineral and natural resources which is very essential for the usage of that country, they can get hat they need by exchanging the products with any other country. So this way of business promotes the peace and good relationship among the countries.
So many countries are entering into trade contract with other countries. If there is some high technology in which the country is lacking, the country can make a joint venture with those countries that are specialized in providing that technology.
According to classical economists, when a country specializes in the production of a few goods due to international trade ad division of labor, it exports those commodities which it produces cheaper in exchange for what others can produce at a lower cost. It gains from trade and there is increase in national income which, in turn, raises the level of output and the growth rate of the economy. Thus the higher level of output through trade tends to break the vicious circle of poverty and promotes economic development.
In less developed countries, due to low per capita income and small domestic market, sufficient volume of output cannot be absorbed. International trade widens the market and increases the inducement to invest income and saving through more efficient resource allocation.
Myints application of smith's theory to the less developed countries for measuring gains from international trade states that the introduction of foreign trade opens up the possibility of a potential surplus, in the primary producing less developed countries. Since land and labor are underutilized in the traditional subsistence sector in such a country, its opening up to foreign trade provide larger opportunities to produce a surplus of primary products and can exchange it for imports of manufactured products which it cannot produce itself.
Enhance your domestic competitiveness Increase sales and profits Gain your global market share Reduce dependence on existing markets Exploit international trade technology Reduce dependence on existing markets Exploit international trade technology Extend sales potential of existing products Stabilize seasonal market fluctuations Enhance potential for expansion of your business Sell excess production capacity Maintain cost competitiveness in your domestic market Disadvantages to keep in mind: You may need to wait for long-term gains Hire staff to launch international trading Modify your product or packaging Develop new promotional material Incur added administrative costs Dedicate personnel for traveling Wait long for payments Apply for additional financing Deal with special licenses and regulations
