Advantages And Disadvantages Of International Trade

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When we look around our homes we tend to forget that the items we have purchased often are items we as a country have received from other countries. We forget that the clothes we are wearing may have come from China or the TV we are watching our favorite shows on came from Japan. International trade has advantages and disadvantages for everyone involved. It wasn’t that long ago that the items we owned only came from within our own country. So why is it that international trade exists and what advantages does this bring to a developed country and what advantages does this bring to a developing country? International trade also has its downfalls. In the following assessment I will look at both the advantages and disadvantages of international trade and how we, as a developed country, are using trade to help developing countries become less dependent on aid to fund development projects in utilizing programs such as Aid for Trade. When one country is more efficient at producing products in a certain industry than another country, it is to their advantage to use international trade. This can raise their standard of living, resulting in more dependable incomes from selling their goods to wealthier countries. In absolute advantage, the country has the advantage of producing goods with the smallest amount of inputs compared to other countries. In these cases the countries should produce goods with the lowest cost of production. However, there are some countries
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