What Are The Benefits Of International Trade?

986 Words Jan 31st, 2016 4 Pages
What are the benefits of international trade?

International trade is the means to which other countries can use and enjoy other products from around the world. When a country becomes part of that trade agreement, then they have the ability to leverage their goods to gain wealth and stability. As stated in the article by Economy Watch. Benefits of International trade. “The global trade can become one of the major contributors to the reduction of poverty.” There are a couple of scenarios that make international trade beneficial for a county. One would be if the country produces something that other countries have a hard time getting otherwise. Supply and demand will essentially promote a country to stardom in this international exchange. For instance, Brazil sells coffee. Although, other countries produce coffee such as Columbia, Brazil outsells coffee in comparison. As stated in the article Coffee Producing Countries, “Brazil grows roughly a third of the world 's coffee.” The other instance is if the production of goods can be kept at lower cost to production ratio. Those countries can still benefit even if they are not the only country with that good. Columbia, Costa Rica, and the Dominican Republic some of the other producers of the world’s coffee and can use this good to benefit their country from the sale and trade of it. From the article International Trade and the Economy states, “The process of importing and exporting creates a greater variety of goods and…

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