The following are the major advantages or benefits from international trade:-
- International trade 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. Research & development from developed countries can benefit developing countries through trade
|
- It acts 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.
|
- Increased competition because of international trade hence the need to be efficient and effective in the production, helps to further stimulate research and development and more rapid adoption of new technology to reduce costs of production in order to compete with imported products
|
- International trade enables countries to embark on specialization which ultimately increases world output and improves the standard of living.
|
- International trade 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 scales, etc
|
- Non-economic advantages like political, social and cultural advantages to be gained by fostering international trades like in the case of the ASEAN, AFTA, EEC,etc
|