Two Benefits of International Trade

One benefit of international trade is that different economies will be able to obtain a variety of goods, through spacialization. Different countries spesialize in the production of different goods, due to the difference in the recources that it contains. So through specialization, one economy will be able to obtain a certain product/good that it is domestically unable to produce, or has a difficulty to do so, by trading something it actually specializes in. For example, Japan specializes in the production of “technological” goods, such as cars, and electronics. However, it has a great difficulty in domestically producing agricultural goods, such as wheat or rice. Therefore, it can trade the goods its most productive in producing (electronics, cars), with another country that specializes in the production of agricultural goods but has a problem with technological goods. This way, both countries benefit by obtaining the necessary goods, causing an economic growth and a greater economic flow, through international trade. To be more specific, consumers benefit because they now have a larger range of goods to choose from, and producers have much larger markets.

Another benefit of international trade, is the improvement of relationships between countries. Through international trade, countries will not only benefit by obtaining an economic growth, but they will also expirience positive attributes through their learning of another countries underpinnings. These underpinnings could be different factors, such as a different cultural, or a different political perspective. So, when one country learns of another countries cultures and policies, they have less incentive to go to war, or even posses some sort of milder grudge. Therefore, international trade is also necessary, for the establishment of camaraderie  and influence between different nations.

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