Answer to Question #91617 in Macroeconomics for Unknown287159

Question

What international trade is and why countries should trade?

Answer 1

International trade is the exchange of products and services between nations or across international territories. In most states, global trade represents a huge share of its gross domestic product (GDP). International trade helps in creating employment and improving economic growth. It allows the domestic trade the opportunity to deliver their goods or services to foreign market hence widening the market. Global trade also allows firms to gain a competitive advantage. Imports allow International competition to decrease the prices offered for products or services for customers. Trading in international markets gives consumers a wide variety of products and services.