International trade reduce the wastage and helps to make optimum use of country’s natural resources. It gives opportunity to consume goods which cannot produce in country due to lack of resources or higher costs. If a country engaging international trade that country produce goods not only for the domestic consumption but also for the exporting.
Other Question and Answers that can be helpful for you
1. What are examples of international trade?
- International trade is an exchange of a good or service involving at least two different countries.
- Comparative advantage allows for gains from international trade, ultimately leading to increased consumption of goods.
- Two major protectionist trade policies are tariffs and import quotas.
2. Why is international trade important for the economy?
The role of international trade in the economy is to find a balance between importing and exporting that keeps the country’s economy strong and its standard of living high. Perhaps, the most important role of international trade is to keep the citizens of a country healthy and happy.
3. What is the meaning of international trade?
International trade is referred to as the exchange or trade of goods and services between different nations. This kind of trade contributes and increases the world economy.
4. What is the importance of international trade?
What’s the need for an International trade?
- Price. If foreign companies can produce or offer goods and services more cheaply, then it may be beneficial to go for foreign trade.
- Quality. If the companies abroad can offer good and services of superior quality.
- Availability. If it is impossible to produce that product domestically, like a special variety of fruit or a mineral.