April 16, 2023

Benefits of International Trade Quizlet

Which of the following are benefits of international trade?

A lot of modern amenities are available to us today thanks to trade between countries. This includes the things you have in your home, such as a TV or smartphone, and many other products that you wouldn't be able to buy if you didn't have access to them overseas.

Increasing the Economic Growth of Each Country: When people in different nations purchase a product from another country, that money is then spent in the other country. This encourages the economy of the country where that product is sold to grow, and it also helps the government to raise its own income.

Encouraging Competition and Introducing New Products: Through free trade, countries have the opportunity to introduce products, services and technology that they haven't been able to provide before. This increases the competition in the market, and keeps prices down for consumers.

Lowering production costs: Because of international trade, countries have the opportunity to reduce their production costs. For example, if a country has an abundance of cotton in their fields, they can sell it to England, which can use the cotton to make cloth cheaper than it would be for them.

Full Utilization of Resources: Because of international trade, countries can utilize their natural resources more efficiently. For example, if a country is rich in oil resources, it can export that oil to other countries that need it.

Increased Employment Opportunities: Because of international trade, companies can create jobs for those who need them in other countries. This increases the number of people employed worldwide, which is good for the economy and for the world.


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