Question

What are three examples where standard operations in a country were positively impacted by international trade?

Answer 1

Positive Impacts of International Trade:

A) International Trade creates great opportunities for emerging companies to get into larger markets around the world.

Example: Brazil has always had a strong agricultural sector but its expansion to larger markets in the world made it the biggest soy and beef exporter in the world.

B) International Trade also allows businesses in developing countries to become part of international production networks and supply chains, thus, expanding beyond manufacturing into services.

Example: The European and American countries are outsourcing functions like data processing and customer service to African and Asian countries.

C) International Trade can help to reduce poverty and raise the standard of living and income of the economy.

Example: The best example is China, where due to Globalization there was a strong increase in GDP per capita in 2013 as compared to 2000.