The Advantages And Disadvantages Of International Trade

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1. Introduction
I'm very sure everyone has heard of the word "Trade" as we carry-out trading in our activities, but do we really know the full definition? Well, some people know it while some don't, either way this article is beneficial for both parties as it'll let you have more knowledge about it. Trade can be defined as the exchange of commodities for between two or more people with the aim of benefiting mutually. It involves buying and selling of goods for money or anything that is worthy of the goods being traded. Which means one can still trade for other valuable things other than money.

2. International Trade
According to the definition given above and as the name implies; International Trade is the exchange or transfer of goods and services between two or more countries for each
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Geographical Disadvantages of International Trade
As already mentioned everything that has an advantage will surely have some disadvantages. I have taken a peek at the advantages, now it's time to look the negative aspect of International Trade.

5.1. Misuse of Natural Resources
Natural resources which are non-renewable, such as oil, can be used up within a short period of time leaving little or nothing for the citizen of the country to use. With this, the economy of such country will downfall and it will lead to diversification of export products. For example, a country that is well known for exporting crude oil might lose it's status after using up all of it's crude oil and might resort to exporting other products such as forest products and so on which has it's competitors already, so it's just like starting all over again.

5.2. Threat to Infant Industries
Industrial companies that partake in international trade are always big firms or government owned bodies and they produce goods in large quantities for both home and foreign use. This poses a threat to small and developing countries as they stand no chance against the big industries therefore, it discourages their
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