Essay On Advantages And Disadvantages Of International Trade

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The benefits of international trade includes the following:
1. Source of revenue to a nation:
“The international trade accounts for a good part of a country’s gross domestic product. It is also one of important sources of revenue for a developing country”. Economywatch (2010, June). Benefits of international trade. Retrieved from Economywatch website.http://www.economywatch.com/international-trade/benefit.html.
2. Growth of globalization:
“The rise in the international trade is essential for the growth of globalization”. Economywatch (2010, June). Benefits of international trade. Retrieved from Economywatch website.http://www.economywatch.com/international-trade/benefit.html.
3. A major source of growth for nations:
“The benefits of international
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And with this, you get the chance to eventually increase your profits.” Occupytheory (2014, May). Advantages and Disadvantages of international trade. Retrieved from Occupytheory website…show more content…
To promote cultural diversity: “The import and export of goods and services introduces the taste and preference of one group of people to the rest of the world.” Studylecturenotes (2014, August).What is international trade meaning, advantages and disadvantages.Retrieved from studylecturenotes website http://www.studylecturenotes.com/business-studies/what-is-international-trade-meaning-advantages-disadvantages.
8. To promote international relations:
It brings a friendly relations with other countries”.
9. To ensure price Stability:
It ensures prices of goods and services are stable. For example OPEC controls the prices of crude oil among its member nation.
10. Reduces Trade Fluctuations:
This is mostly achieved through stability in the prices of goods and services.

Some of the negative aspects of international trade are:

• It affect the performance of local industries:
When countries import goods or services from other counties that are still produce in their local industries, it reduces sales of that particular product or services and profit margin of the local industry. For example the prices of made in china product affects the turnover of most locally produced products in Nigeria.
• Excessive utilization of natural
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