List some benefits of international trade
The benefits associated with opening domestic markets to international trade are as follows:
o Trade agreements are often reciprocal. That is, if a country opens domestic markets to imports, markets in other nations are opened to its exports.
o The variety of goods and services available in the market increases.
o International trade allows companies to sell to larger markets and gain economies of scale. That is, larger production levels can potentially lower the average cost of production per unit produced, and these cost savings help lower overall prices.
o International trade enhances the flow of ideas and increases multicultural awareness. As a result, there is an expansion of overall knowledge in society, which increases the rate of new product development, scientific advancements, and cultural understanding. All of these factors increase the opportunity for economic growth and the increased welfare of societies.
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