Economic impacts of international trade on business operations

International Trade

Advantages and Disadvantages of International Trade

International trade presents a number of advantages and disadvantages in terms of the different aspects of trading. In the side of advantageous points, international trade allows bigger market in the export industry, providing more trading opportunities and more profits in the different regions worldwide. This consequently presents another advantage to people, in that they are presented with more job opportunities. In terms of import, international trade provides businesses with more choices of trading sources in the market, thus offering the consumers with a wide variety of goods and commodities. While more businesses enter the international trade, free trade agreement becomes more open between countries. This similarly brings an advantage of closer business relationship between countries. On the other hand, in the disadvantages of international trade, international trade makes the prices of commodities unstable in terms of export and import. A local business can earn more if it enters the international trade. Commodities can be sold at a higher price if exported in international trading as compared to local trading. However, while more and more businesses enter the export business, the prices of commodities can become unstable which basically depends on the number of competing companies within the same area of industry in international trading. The same effect can occur for import industry. The prices of imported goods and commodities depend on how much the export market sells the commodities.

Applying the Situations in International Trade