Question

What would be the advantages and disadvantages of increasing Canada’s trade with Asia?

can you please provide a conclusion

Answer 1

Advantage:

1. All types of goods will be available because of international trade

2. There will be optimal use of natural resources

3. It will get benefit in terms of economy of scale, which means there will be a large scale of production.

4. There will be a chance of exchanging the expertise in various domains between Asia and Canada

5. There will be benefit of economic of scope.

6. There will be stability in prices and product standard.

Disadvantage:

1. Home industry will be affected

2. various political problem

3. Tariff and duties

4. In the time of emergency there will be a sort of supply from international regions that’s why the people of home country will suffer because of the supply shortage, at the same time as the home country doesn’t have the infrastructure to produce that particular goods the problem will continue.

5. Cross cultural barriers.

6. Language problem

Conclusion: According to various trade theories in international economics there will be more efficiency in terms of production and consumption if a country goes for international trade even if the country is having superiority of producing any particular goods or service. So Canada should trade with Asia.