One of the factors influencing regional groupings is international trade, which affects economic expansion and state spending. Increased market efficiency due to greater trade liberalization helps restore welfare programs that would otherwise be lost due to the introduction of trade limitations. The advantages of the trade include a large market for domestic products and increasing competition from international companies, which drives businesses to innovate more to survive, inevitably leading to less expensive items.
The state’s progress in developing successful international trade highly depends on domestic policy and regulations. Additionally, how the government manages resources and possibilities directly affects the performance in the foreign field. It is evidenced in the video by Economics AltSimplified (2021), which shows the information on how history, internal policies, and markets can affect international trade. For instance, the example of Mexico reflects how the practical decision to develop the beneficial industrialized areas on the border with the United States provided significant economic growth. However, the limitations are observed due to the government’s lack of effective expansion of such possibilities. The video shows that knowledge about advantages and disadvantages contributes to effective international trade. However, experiencing the growth rates in trade can highlight the imbalanced state’s system, which at the same time can decrease the overall economic development and affect citizens.
Therefore, the information that enriches knowledge about international trade depends on several aspects. First of all, historical components of the state’s development and experiences. Second, the advantages of the governmental policies and how they were managed regarding the trade. Third, strategies to resolve obstacles that prevent the quicker development of the economy and minimize the country’s role in the international field.
References
Economics AltSimplified. (2021). Economy of Mexico: The World’s Slowest Emerging Market? (2021) [Video]. YouTube. Web.