International Trade: A Catalyst for Global Growth

International trade is the exchange of services, goods, and capital among various countries and regions. International trade accounts for a portion of a country’s gross domestic product. It is also a major source of revenue for developing countries. Over the years, International trade has thrived due to the multiple benefits it has offered different countries on a global scale. The rise in the international trade is essential for the growth of globalization.

The benefits of international trade have contributed to the growth for the last half of the 20th century. Nations that have a robust international trade presence become prosperous and have the power to control the world economy. With help from modern production techniques, highly advanced transportation systems, transnational corporations, outsourcing of manufacturing and services, and rapid industrialization, the global trade system is expanding very fast.The global trade can become one of the significant contributors to help reduce poverty in the U.S and other countries.

When thinking about international trade, you have to consider three things. Those three things being opportunity costs and comparative and absolute advantages. Comparative advantages can benefit all parties involved in the deal, as long as the goods produced, have different

Exposing an already established product into a new global market can be very rewarding depending on the demand for the good. If the demand is at a profitable margin, supply will come easily since no new resources need to be allocated for production. An increase in revenue will lead to higher productivity amongst workers, not only because of increased wages but because workers are accustomed to the production process. It can also relieve the pressure of innovation and more time to analyze the consumer tendencies in other