Principles of Economics
International Trade
Presented by Sylvanus Thorpe
Course XECO/212
Instructor: Kristin Paul
May 15, 2013
University of Phoenix
Introduction
The exchange of goods and services between two countries is called an international trade. This trade produces world economy in which it affects supply and demand globally; this gives consumers and countries the privilege to expose to goods that are not available in their country such as food, clothing, oil, jewelry, and many more commodities they cannot produce by themselves.
Advantages
There will be more variety of goods that are available for consumption. This brings into country different varieties of peculiar food and products from different countries globally. This will give consumers the ability to make choices of food and product which bring them a quality of living and will help the country to improve.
There will be growth in employment by the increase of industries that meet the needs of productions for the particular international product. This will help the country to bring down the unemployment rate and people will pay more taxes to government the income of the government will increase.
It improves foreign exchange; by selling their products to other country the country will earn foreign exchange which will bring growth to their economy.
Disadvantages
The welfare of the people is ignored in place of profit making. The profits at times only benefit minority of people. The ignored people work under unfair circumstances such as no insurance to cover them, working in an unhealthy environment which
