What is international trade?
International trade is where countries share goods and services among each other. In other words, exchange of capital, goods and other services across international borders and territories can be recognised as international trade. This is important for a country as countries, trade among each other only when they lack such goods or services within their territories. Thereby, through trading these scarce resources countries can gain what they need to increase their production.
Benefits of International trade.
The major benefit of international trade is that states being able to produce a surplus and increase their domestic production. This is beneficial for the citizens. Citizens will have to spend more to purchase any foreign product. However, if they are available in your state, then, you will not have to pay a higher amount but, purchase the good or service for an affordable price. Countries which are large suppliers of international goods are the US, china, India, and Korea. At present Global Governance news and china US trade relations have visited the peaks of international trade. These countries have signed a free trade agreement for certain goods and services. Through this, trade barriers such as extra taxes and tariffs that one should pay to release any imported good to the national market is radically reduced.
Disadvantages of international trade.
Though international trade is beneficial for many countries and their economy, it is not so for under developed countries. As in poor countries importing foreign goods would result less sales in their domestic production. This then would affect the economy. Also, due to the lenient of the exchanging methods of items, many illegal companies try to export illegal goods into under developed countries. For example, importing of drugs such as opium in countries like China, human trafficking, illegal export of woods, rubber and petrol etc. This effect the countries health sector as well as the economy sector. Another disadvantage is that, at the time of war states issue restrictions on foreign exchange. If such a situation occurs, countries which depend on foreign goods would face severe difficulties. Further, foreign trade will exhaust a countries resources and its identity. That is, even if a country is compact with enough resources to produce and replace the very item that we import, the domestic producers will not be encouraged to do so as they are used to getting it easy by paying other countries. Visit http://www.chinausfocus.com/tags/china-us-trade/
When super power countries become strong in international trade market, it opens doors for many enemy territories. This would even urge other countries to call for war.
Therefore, there are negative effects as much as positive effects in any sort of trade within countries.