Question

“International trade is beneficial to developing countries.” Do you agree? Discuss your arguments with the support of at least one international trade theory.

Answer 1

YES, in my opinion, international trade brings benefits to developing countries. Establishing nation employees are often paid less than the United States base pay but still, globalization has actually made low-income countries much better as they have actually been provided good life options. It increases their average earnings. With trade, the wage rate will increase in developing nations and the decrease in developed countries hence will bring equality. Production is significantly specialized and develops deeper relationships among markets throughout borders allow and encourage producers and customers to reap the gains of economies of scale. Due to globalization, the suppliers face higher competition from foreign companies which reduces monopoly gains and incentivize services to look for cost-reducing improvements and developments in what they offer these results to an enhancement in dynamic effectiveness.