Buying, selling and exchange of goods and services across national borders is called international trade. Economics deals with the proper allocation, efficient and effective use of scare resources. Similarly international economics is also concerned with the proper allocation of economic resources between the countries. Such allocation in the world global markets can be possible by the international trade.
In these markets, the best products are produced and sold in a free and highly competitive markets, which enables the availability of best quality and low price products to the people all over the world. Such a benefit helps in buying the goods from a country which has the lowest price and selling those goods in the countries which has the highest price. This is good for both buyers as well as sellers, and this leads to the opportunity in the economic development of both less developed and developing countries.
International trade serves as a platform for globalization. The production and consumption of goods and services would be limited, if every country produces their own products for their own needs. As every country has lack of few resources, the allocation of these resources among the countries can balance the economic resources around the globe, and this can be done only by the international trade. This results in increase in the standard of living of people all over the world which again leads to the increased level of customer satisfaction.
Tags: personal finance