In this
connected world, no one can live isolated. It is the case with countries. A
country cannot survive without friends. All have to move together and work
together to make the world a better place. Trade benefits all the stakeholders
and international trade company has many
benefits for all the countries.
Trade is one of
the oldest things human learn. They trade goods for goods or goods for
currency but we trade goods and services to earn valuable foreign exchange. The
volume of trade can judge a nation. It can create many jobs and eliminate
joblessness and poverty from the country.
·
Imports
Imports are a
country buy from other country to meet the requirements of local population. To
import goods from other countries, country has to pay to other country in the
currency the seller asks them to which puts major burden on the economy.
Exports
Exports are
products sold by one country to another country. It will give a boost to the
economy of the exporting country. A country can earn valuable foreign exchange
by exporting surplus goods to other countries. The more a country export the
better it is for their economy.
Advantages of International Trade
- A country can use international products that cannot be produced within their border
- Consumers benefit from competition between local and international products due to dip in prices
- International trade help in making the best use of surplus produce. Nothing is wasted
- It also helps in developing good relations among different countries of the world. It helps in maintaining peace and develops mutual understanding between nations
Disadvantage of International Trade
·
International
trade opens the doors of harmful goods entering into your country such as drugs
and cigarettes. This may lead to destruction of health of local population
- If a country imports too much it will put a lot of burden on the economy. A time will come when economy will crash down
- Sometimes a country neglects its local population’s requirements and exports goods, which leads to increase in their prices within the country
- A country can reject the imported goods by saying it does not meet the requirement we have agreed upon and exporting country have to pay for it
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