Benefits Of Trade

Benefits of trade in Global Commerce Policy

In this regard, benefits of trade is: refers to benefits different to the ones postulated in the gains-from-trade theory which states that two countries with different price structures will get better economic returns if they trade with each other than if they adhere to autarky. The theory of comparative advantage also points to the benefits of international specialization. There are some other benefits. Trade gives access to capital goods, machinery and raw materials. The entries on trade policy are here. It leads to the transfer of technology through the commercial and cooperative spread of new techniques, ideas and skills. Trade promotes the transfer of capital as firms seek to produce in the country best suited to their needs. Trade also brings about an additional benefit not always seen as that: anti-monopolist policies and an environment of competition.[1]

Benefits of tradein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Benefits of trade” entry (OAS)

See Also