Question

Explain how international trade has benefited billions of people, in terms of employment opportunities and improved living standards, globally in each of the following products/services.

a. Wheat. b. Banking services. c. Computer software. d. Automobiles.

Answer 1

A survey by World Bank group shows that FDI’s and International Trade are good for the economies especially the developing economies. They enable the inflow of technologies and human capital along with the skills. This creates growth in the economy. Countries generally do Foreign Direct Investments and accept it also (Both ways).

Even in industrialized economies, Trade can generate the economic development and employment opportunities that provide the wealth that allows for later improvements in environmental standards. FDI and trade promote growth in recipient countries. It promotes the business that means greater access to the market and environment which actually means greater profits and thus growth.

Wheat- agriculture is the most important sector and the international trade in agriculture has benefitted us all. There has been increase in farming activities since then. Now it is required to product for domestic market as well as the international market. The employment has also been increased due to this.

Banking services- international trade in banking sectors called for an evolution that has been at advantage for us all. There has been an increase in money supply, loan quantities which has helped many businesses to set up. The exchange rates have also been affected by this positively.

Computer software- Exchange of computer software between countries has helped manufacturing and services sectors greatly. The increase in technology that came in with the computer software has helped achieve the economies of scale. The cost has been fallen and helped the companies to achieve their targets effectively as well as efficiently.

Automobiles- you must have heard of Japanese cars being the best because they have best technologies and best human capital. Well, due to enabling international trade of automobiles, the world has been able to experience the best automobiles that are there across the world. The diverse demands of customers have been fulfilled by the international trade and helped the recipient country to grow as well (ofcourse the employment that has been increased so greatly.)