Question

1)"For my Country,Import are the Good Thing about international trade."Where as Export are more like neccesary Evil.
Do you agree or Disagree and Why ? Please write 7 points.
2)How do absoluete advantage and comparative advantage relate to each other?

Answer 1

1) In my opinion, I disagree with the statement that imports are good for international trade while exports are neccesary evil because of the following reasons-

• internal economy becomes independent and does not have to solely depend on imports for goods and services.
• exports help in realizing economies of scale, i.e., lower costs of production due to increased capacity and efficiency.
• increase in production, which promotes economic growth in the nation.
• exports helps in significantly expanding the market from local to global with increase in potential consumers.
• Helps in trade surplus and flourish the economy
• the sales increase and profits are maximized
• helps in increasing the number of employment as more efficient workers are required to meet new output levels of production.