Question

``International trade is mutually beneficial to nations.'' Support the statement with suitable arguments.

Hint:

Trade = Specialisation + Exchange = Mutual benefit.

Answer 1

Concept: International trade refers to the exchange of goods and services across national boundaries. It promotes economic cooperation and interdependence among nations, leading to shared benefits. Arguments Supporting the Statement:

• Efficient Use of Resources:
  Countries specialise in producing goods they can make efficiently and import others. This leads to optimal utilisation of global resources.
• Access to Variety of Goods:
  Trade enables nations to access products not available domestically, improving consumer choice and living standards.
• Economic Growth:
  Exports generate income, foreign exchange earnings, and employment opportunities, boosting national economies.
• Technological Exchange:
  International trade facilitates the transfer of technology, knowledge, and innovation among countries.
• Strengthening Global Relations:
  Trade promotes cooperation and peaceful relations by increasing interdependence among nations.

Conclusion:
Thus, international trade benefits all participating nations by promoting growth, efficiency, and global integration.