Gains from international trade, Microeconomics

Assignment Help:

Gains from International Trade:

It leads to increased total world production of goods and services. International trade based on comparative cost advantage allows countries to specialise in what they can do best. This allows for increase in output and Invariably increases in the volume of total world output.

• It leads to efficiency in use of world resources. International trade is based on specialization in what you can do best. This means each country involved in international trade uses the resources available to her in the most efficient way and hence world resources are efficiently used.

• It leads to availability of variety of goods and services. International trade makes citizens of nations to consume goods and services their resources cannot be used to produce.

• International trade leads to economies of scale. International trade leads to increased output and firms involved in producing for exports may enjoy cost reducing advantages that go with increased output.

• International trade brings about interdependence. This, politically, may help a nation to be conscious of the existence of other nations.The interdependence of nations helps promote good neighbourliness.


Related Discussions:- Gains from international trade

Business cycle, measures to control business cycle

measures to control business cycle

Find the equilibrium price and quantity, 1. Assume that the market for whea...

1. Assume that the market for wheat is perfectly competitive. Suppose the demand curve for wheat is given by: QD = 200 – 2P where QD is the quantity demanded, in bushels, and P i

Calculate profit maximizing output level , Qustions: You are the sales ...

Qustions: You are the sales manager at SoftSystem, a dominant firm that produces operating system. The new operating system, Doors XR, has been newly developed. Its demand is e

Explain briefly the other defence strategies, Find a recent hostile takeove...

Find a recent hostile takeover in Europe and compare the European takeover tactics and defences to those tactics and defences in US. In your opinion do you think the targeted firm

Differentiate between nominal and real exchange rate, Differentiate between...

Differentiate between nominal and real exchange rate.  Nominal exchange rate is the rate which actually prevails in the foreign swap market. The real exchange rate is the rate

Private and social benefits, Private and Social Benefits Private benef...

Private and Social Benefits Private benefits are those which accrue to an individual. They may be both monetary and non monetary, direct and indirect. Earnings of an individua

Explain the main problems with government intervention, Question: i) Ex...

Question: i) Explain the main problems with government intervention. ii) Why and how do governments seek to control monopolies? iii) A country should specialise in the pr

Elasticity of demand for laptops, The price of a laptop increases by 20% an...

The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. What would answer be

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd