Advantages of International Trade
- Created by: s.waterhouse
- Created on: 11-05-17 18:52
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- Advantages of International Trade
- Gives countries access to resources and products
- They would not otherwise be able to use these
- Countries can export goods in order to import these other products
- Consumers and producers enjoy a larger variety of goods and services
- Facilitates faster rates of economic growth
- Increases competition
- Leads to lower prices and more product innovation
- Standards of living are raised by having more choice, with products that are cheaper and of better quality
- Additional markets allow firms to exploit more economies of scale
- Additional markets can mean there is an increase in demand for products
- Open economies benefit from long production runs
- Exposes firms to new ideas and skills
- An MNC can bring manufacturing skills to a developing country
- Allows countries to specialise
- Costs are reduced
- Can be passed on to consumers through lower prices
- Widened production and consumption possibilities
- World resources are used more efficiently
- Global output is increased
- Living standards are raised
- Costs are reduced
- Gives countries access to resources and products
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