Explanation of the benefits that can be gained as a result of international trade

Explanation of the benefits that can be gained as a result of international trade

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Explanation of the benefits that can be gained as a result of international trade Jacky Chong, Y12 Joy, Economics SL International trade is the exchange of goods and services between countries. Countries can be benefited in several ways and aspects as a result of international trade, such as the following: 1. The main gain from international trade is to buy goods and services at lower prices than that in the domestic country. Consumers and producers can buy less expensive products and raw materials respectively. Price may be lower in some countries because of access to abundant resources, different quality of labor forces, different states of capital and technology, etc. 2. When international trade is established, consumers can purchase products other than those from the domestic country, hence provide a greater variety of choices. 3. Country A have or have the technology to produce material A, but it also needs material B,
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Unformatted text preview: while Country B have or have the technology to produce material B, but it also need material A. At this situation Countries will trade materials to help each other. 4. While not just producing for local need, but also for international market, the demand of a product will increase; hence the level and size of production will also increase. 5. When a product is brought into a country from another country, the local producer of similar product need to improve its products quality to compete with the foreign product. This competition will improve the quality of different products, hence benefits the consumer. In conclusion, there are many benefits of trading internationally, thats why countries are developing quicker and quicker since transnational transportation was developed....
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This note was uploaded on 12/31/2011 for the course ECON 111 taught by Professor Jerryfreek during the Spring '11 term at Ave Maria.

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