International trade is one of the main instruments of the economy of countries, which has many advantages. One of the leading ones is the exchange of products and goods that are not available in a particular country. At the same time, this process also has negative aspects that should be taken into account to limit possible undesirable consequences. Thus, based on the article by Amadeo and Boyle, this work will explore how the pros and cons of international trade affect the economic sphere of human activity.
Therefore, first, it is worth analyzing what contribution the positive aspects of international trade make to the economy. Thus, the source notes that it “opens new markets and exposes countries to goods and services unavailable in their domestic economies” (Amadeo & Boyle, 2021, para. 3). Moreover, economic growth is due to the creation of more jobs and gaining experience in creating goods to meet the needs of a foreign market.
At the same time, the disadvantages of international trade include the need to reduce tariffs. Moreover, often, to maintain competitive advantages, companies resort to outsourcing and locating locations with lower rental costs. The authors also note that “countries with traditional economies could lose their local farming base as developed economies subsidize their agribusiness” (Amadeo & Boyle, 2021, para. 5). Thus, countries should be more judicious and careful in developing policies on international trade.
In conclusion, it is worth emphasizing that the phenomenon of international trade and the exchange of goods is of profound importance for the economies of countries. Taking into account the advantages and disadvantages of this concept can help to achieve maximum profitability and efficiency. It is worth adding that international trade contributes to faster growth and development of countries, bringing not only new products but also innovations and new jobs.
Reference
Amadeo, K., & Boyle, M. (2021). International trade: Pros, cons, and effect on the economy. The Balance.