International Trade

Obtaining goods that can't be produced domestically

• Because they lack the natural resources that enable such production

Obtaining goods that can be bought more cheaply from overseas

• Countries producing goods more efficiently than others

Selling off unwanted commodities

• Having so much of a resource they couldn't use it all themselves

Lower Prices and Increased choice for consumers

Lower Input Prices

• By international trade, countries can obtain essential inputs at a lower cost

Wider Markets for Business

• If countries are free to specialise and trade, firms will be selling to larger markets

Competition for domestic businesses

• If imports are good in quality and better priced, domestic producers will struggle

Unemployment

• When domestic industries are threatened, threat of employment
• If a country is too dependent on a narrow range of goods, demand patterns can cause it to suffer