ADVANTAGES OF INTERNATIONAL TRADE

ADVANTAGES OF INTERNATIONAL TRADE: 

ADVANTAGES OF INTERNATIONAL TRADE IT HELPS TO WIDEN THE RANGE OF CHOICE OF GOODS OR PRODUCTS. A COUNTRY IS ABLE TO CONSUME IMPORTED PRODUCTS NOT ABLE TO BE PRODUCED LOCALLY DUE TO LACK OF KNOWLEDGE OR TECHNOLOGY, WEATHER CONDITIONS. ALLOWS THE TRANSFER OF KNOWLEDGE, TECHNOLOGIES AND INFORMATION BETWEEN TRADING PARTNERS. R&D FROM DEVELOPED COUNTRIES CAN BENEFIT DEVELOPING COUNTRIES THROUGH TRADE.

ADVANTAGES OF INTERNATIONAL TRADE: 

ADVANTAGES OF INTERNATIONAL TRADE IT ACT AS A CATALYST OF GROWTH TO DEVELOPING COUNTRIES AS THESE COUNTRIES CAN BENEFITS FROM THE TRANSFER OF TECHNOLOGY AND NEW METHODS OF PRODUCTION FROM ADVANCED COUNTRIES. IT ENABLES COUNTRIES TO EMBARK ON SPECIALISATION WHICH ULTIMATELY INCREASES WORLD OUTPUT AND IMPROVES THE STANDARD OF LIVING.

ADVANTAGES OF INTERNATIONAL TRADE: 

ADVANTAGES OF INTERNATIONAL TRADE INCREASED COMPETITION BECAUSE OF INTERNATIONAL TRADE HENCE THE NEED TO BE EFFICIENT AND EFFECTIVE IN THE PRODUCTION, HELP TO FURTHER STIMULATE RESEARCH AND DEVELOPMENT AND MORE RAPID ADOPTION OF NEW TECHNOLOGY TO REDUCE COST OF PRODUCTION IN ORDER TO COMPETE WITH IMPORTED PRODUCTS.

ADVANTAGES OF INTERNATIONAL TRADE: 

ADVANTAGES OF INTERNATIONAL TRADE IT LEADS TO MORE EFFICIENT RESOURCE ALLOCATION AND LOWER COST PER UNIT OF OUTPUT AS THE MARKET IS VERY MUCH BIGGER AND BROADER TO EXERCISE ECONOMIES OF SCALE, ETC. NON-ECONOMIC ADVANTAGES LIKE POLITICAL, SOCIAL AND CULTURAL ADVANTAGES TO BE GAINED BY FOSTERING INTERNATIONAL TRADE LIKE IN CASE OF THE ASEAN, AFTA, EEC, ETC.

DISADVANTAGES OF INTERNATIONAL TRADE: 

DISADVANTAGES OF INTERNATIONAL TRADE ONE MAY NEED TO WAIT FOR LONG TERM GAINS HIRE STAFF TO LAUNCH INTERNATIONAL TRADING MODIFY PRODUCT OR PACKAGING DEVELOP NEW PROMOTIONAL MATERIAL

DISADVANTAGES OF INTERNATIONAL TRADE: 

DISADVANTAGES OF INTERNATIONAL TRADE INCUR ADDED ADMINISTRATIVE COSTS WAIT LONG FOR PAYMENT DEAL WITH SPECIAL LICENSES AND REGULATIONS APPLY FOR ADDITIONAL FINANCING