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List and explain the advantages of international trade.

      

List and explain the advantages of international trade.

  

Answers


sharon
a.) Exchange of goods and services
It enables a country to obtain what she does not produce through imports and exports
b.) Promotes peace
Helps in promoting peace among the trading countries
c.) Availability of cheaper goods
Enables a country to obtain goods more cheaply than it can produce them
d.) Encourages specialization
Enables a country to specialize in production of goods and services for which they have comparative advantage in terms of resources endowment.
e.) Promotes competition
Promotes competition between imports and locally produced goods which in effect improves the quality of goods produced.
f.) Transfers of technology
Facilitates transfers of technology from more developed countries to less developed ones thereby accelerating development.
g.) Exploitation of resources
The wide market created by the trade enables a country to fully exploit her resources due to wider market
h.) Morbidity of factors of production
Facilitates the mobility of factors of production such as labor and capital from one country to another.
sharon kalunda answered the question on February 19, 2019 at 09:26


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