Question

Before international trade, each governmental unit would practice isolationism, or providing for its people with its own resources. Why is global trade beneficial? (150 words)

Answer 1

1):-Globle trade :- it create competition and lower world price. Which help consumer in rising purchasing power of their own income, and rise consumer surplus it is helpful in breaking monopoly in domestic violence market.

1) :-Global trade benefit.

• it helps in rising living standard, employement and also enable consumer to enjoy large variety of available goods.

•advantage of it is that it lead specialization, economic growth, and reduce globle conflict

• efficient allocation and better utilization of resources because country are Producing those goods in which they have compitative advantage.

•promote efficiency in production because country will try to adopt better and effective method of production so they decrease their cost of productions in order to remain in competition.

•more employement are also reasons form globle trade because it's provide large variety of employment opportunities in country or out side the country

•consumption of cheater good.

• reduce trade fluctuations or help full in settle conflict between them.

•create peace and goodwill.