Benefits of International Trade

In this era of globalization, we might not be able to avoid international trade. International trade is trade between two countries or more to make ends meet. International trade occurs because of differences in natural resources among states with one state to another. The difference is what causes the cooperation of two states occurs. International trade also occurs because each state requires of other countries, just as humans as social beings who can not live without the other. Furthermore, whether the benefits of international trade? International trade thus has great benefits for each country.

Benefits of International Trade
Here are some of the benefits of international trade.

1. International trade allows each country to have the goods that can not be produced domestically. Imagine if there was no international trade, Indonesia would not be possible to have cars, computers, and electronic equipment. If there is no international trade, countries in Europe also could not eat fruit that is only produced in tropical countries.

2. International trade can increase foreign exchange through exports.

3. International trade can expand the market. For example, a merchant was not satisfied with the market share that dwell only in the country. Therefore, he made international trade with the aim of introducing their products and increase market share. This goal is a goal of expansion.

4. The existence of product specialization. Every country has the ability to produce different goods or services. For tropical countries, producing durian fruit is an easy thing. However, not so with subtropical countries. Likewise, countries that already use high-tech. Making the computer is probably very easy, but not so with the third world countries. That is why every country that has advantages in their respective fields focused to produce products as good as possible. These products will be "exchanged" with a product that can not be produced in the country by international trade.

5. International trade can also increase the cooperation between two or more countries that may be working in other fields.

6. International trade, indirectly, would enhance the quality of products or services produced by a country. Of course it will happen because competition is so tight in international trade. Not only of domestic entrepreneurs, but entrepreneurs from abroad. Goods or services that do not meet the quality will be eliminated by itself.

The benefits of international trade is so crucial to every country. None of the countries in the world who can live alone. They all need other countries to meet the needs of everyday life. If there is no international trade in a single day, state of the world may be topsy-turvy.