Outcomes of International Trade
The outcome of international trade would include-
- International trade between two or more countries assists all of them in making the most use of their natural resources. Every country can concentrate on producing goods and services from these resources and selling them to other countries in order to gain foreign cash and strengthen their economy.
- It enables a country to receive commodities and services that it would be unable to produce on its own due to a lack of resources or greater production costs. They may obtain these things at a reduced cost from outside the country.
- Some countries have advantages such as natural resources, labor, technology, and capital. These resources enable them to produce specific types of goods and services at lower costs and sell them to other countries that require them.
- It aids in smoothing out the advantages and putting a halt to the wild oscillations that can occur as a result of these items’ unavailability.
International Trade
International trade refers to the exchange or trade of goods and services occurring between countries and influences the world economy. Some of the most commonly traded commodities include clothes, machinery, raw material, and so forth. The volume of international trade has increased manyfold and covers different domains which include travel and tourism, banking, communication, advertising, and so forth. There has been an increase in foreign investment as well as the production of goods and services at the international level.
International Trade