Explain the importance of international trade?

Question: Explain the importance of international trade?

International trade is an important part of a nation’s economy and a major driver of economic growth and development. It enables countries to access resources, materials and products that they may not have at home, as well as allowing them to expand their market potential and increase their export revenues. Trade also helps to diversify economies, creating jobs and providing access to more competitively-priced goods and services. This is crucial, particularly in under-developed or developing countries, to earning a greater amount of foreign exchange and allowing them to lift their citizens out of poverty. International trade also allows countries to help balance their payments deficits, as countries often import and export products as a way to manage their foreign exchange reserves. Finally, international trade provides an invaluable means of increasing global economic interdependence, leading to greater economic stability.

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