Advantages That May Be Gained From International Trade
- One main advantage from international trade is that it allows an economy to specialise in particular products, as the ones it doesn’t produce it can import
- Consumers benefit from higher competition in the form of lower prices and higher quality
- Firms will also have access to larger markets in which to sell their products and to buy raw materials.
- Despite the advantages of international trade, some economies restrict exports and imports
- Restrictions on exports may occur if the product within the economy comes into short-supply
- Restrictions on imports may be due to the products being imported may threaten industries in the country’s economy, or that they come from an immoral background (e.g. child labour or unfair competition)