Countries do benefit from international trade in a broad way. There might be flaws as far as benefiting from international trade is concerned but there is evidence to show that many countries have benefited from this. Every country has its own expectations and targets as far as benefiting from international trade is concerned and this is something that has always differed. It is quite evident that every country goes into international trade with an aim of benefiting and this has been fulfilled in various occasions. There are good signs and indications to show that international trade has benefited many countries and this should be capitalized on for long term sustainability (Glyn 23). Therefore, it is undeniable that countries have benefited a lot from international trade. We live in a unique society where we can not say that we have everything thereby justifying international trade.
The world has become an open economy where people can move from one place to the other without many restrictions thereby advancing trade. There is no country that has ever shied away from international trade and this is a fact. In this case, we can not say that there is any given country that lives in abundance meaning that there is everything to gain through strategic partnerships and cooperation. All the countries whether developed, developing or underdeveloped can benefit from international trade in various ways. International trade can only thrive in an environment that does not have any barriers (Watson 34). Such barriers can be looked at from an economic point of view through quotas, tariffs and other government subsidies. In cases and occasions where such aspects have been well effected and implemented, countries have benefited a lot from international trade. Such practices enable different countries to get goods and services that they are not able to produce on their own.
Countries benefit from international trade because it has become the backbone of our modernity and commercial world. This can be looked at from different perspectives because there are positivity’s and negativity’s that can be realized from international trade. It is quite practical that producers from different countries can benefit and profit from a wide and open global market through international trade. There is a large population that has been lifted out of poverty through international trade. International trade enables companies to access new markets thereby employing more people from their communities and environments (Glyn 51).
In the long run, a lot of people are lifted out of poverty because they can create wealth and invest. Economists argue that people will only invest if they have a good disposable income through savings. In this case, an expanded market means that different companies will be profitable thereby giving employees’ a good package. As time goes by, people and employees invest in their societies thereby creating wealth. The general theory of comparative advantage has been put into practice through international trade thereby benefiting various countries and companies. In this case, the more it’s put into practice by people, the more it benefits countries.
There are occasions where international trade has led to socio-economic inequalities but this can not override the benefits that come with it. This has only been practical where good policies and frameworks have not been put into place. As far as Adam Smith is concerned, individuals, companies and nations can be better off if they specialize in the production of a given good instead of striving to be economically self- sufficient. This therefore justifies international trade which seeks to give people different goods and services that they can not produce in their own countries (Glyn 21). This principle of specializing in the production of a given good or service can be applied in international trade for long term sustainability. All this should be done for mutual benefits meaning that there is no country that can participate in international trade if it is not benefiting in any way.
There has been an argument that countries can benefit from international trade even if a given nation is producing two different goods cheaply than the other. International trade occurs across borders and this has given different countries a big boost on their GDP as time goes by. In this case, countries that have wanted to grow their economies quickly have occasionally relied on international trade to achieve this. International trade is very lucrative than it used to be in previous years and this is because of the interest and attention that it has been given. In this case, industrialization and globalization have changed the approach to international trade thereby giving it a new face and dimension (Watson 56). Nations have benefited from international trade through the value of peoples lives. In this case, their choice is not limited in any way which opens up borders. This means that people are not confined to what they have been given which is the nature of human beings.
Countries can not say that they have not benefited from international trade because it saves on costs. In this case, a nation can produce its goods in a different country that has low costs of production. Income opportunities have been created through international trade thereby benefiting locals and the country at large. Every country has its own laws and policies that govern international trade and this means that they should always favor them.
This means that mutual understanding and corporation should work in favor of both countries. As a matter of fact, the world trade organization has been monitoring trade activities to ensure fair play. This has enabled countries to enhance their relationships thereby benefiting everybody.
Problems have been identified in advance to ensure that good solutions are arrived at for long term sustainability. Through international trade, countries have been able to increase their stock of resources (Watson 71). Most notably, the supply of labor and capital has been enhanced as time goes by. Foreign investors have been instrumental in the transfer of capital through numerous business opportunities that exist in different countries. Free trade has been identified as the key concept under which international trade operates. As a matter of fact, free trade has not been practical throughout the world. This is based on interests that different nations and individuals have as far as restricting others from their territories is concerned.
The benefits of specialization and free trade can not be disputed because this is something that can be seen in the world today. There is an argument that free trade has failed to deliver what it was intended to achieve but this is based on different expectations (Glyn 29). For instance, poor countries are still poor but we can not expect international trade to solve all the problems yet other countries do not have the capacity. The ultimate aim of trade is to benefit both parties and this should be achieved through good interaction and mutual understanding.
Thorough international trade, various countries have established agreements and treaties that have ensured that they benefit well. There are countries that have good economies of scale meaning that it will be much easier for other countries to shift production which is good. International trade is very complex meaning that countries can never be equal. In this case, it is quite obvious that a different nation will have more economic power over another but this should not be used against trade because there is something that they can benefit together (Watson 36). Consistency in trade has given countries an opportunity to reevaluate their approach to international trade thereby correcting their initial mistakes. Countries have always wanted to finance their budgets and take care of their infrastructural projects which can be enhanced through international trade. In this case, countries have ended up earning foreign money which enhances growth. As a matter of fact, this money stimulates economic growth and developmental activities that can not be achieved single handedly.
Standards of living in different countries have been enhanced through international trade as people travel to different destinations to grow their business. As a producer, it is quite obvious that markets need to be expanded to enhance growth (Glyn 33). This means that there is nobody who can say that international trade is disastrous because everything has been going on well. Countries will continue benefiting from international trade because there is an urge and effort towards self sufficiency. This means that there should be less reliance on foreign aid to correct inequalities.
Ideas: A history of money from ancient times to the present day. Wales: University of Wales Press, 2002. Print.
Watson, Peter. Ideas: A History of Thought and Invention from Fire to Freud. New York: HarperCollins, 2005. Print.