International trade is the most significant thing that creates better business opportunities and increases living standards; it enhances the global economy. On the other hand, it brings diverse products to the citizens of countries worldwide.
Some of the most significant advantages of international trade are:
• Use of resources: Through the development of international trade, several countries use their already-existing resources and raw materials to create new goods and services that are then exported to other nations that require them. For instance, Middle Eastern countries export oil and import consumer goods or services in exchange.
• More variety for customers: Having a broad selection of products is one of the main benefits for international traders and other benefits. For instance, ethnic clothing from Iran or India is sold in markets worldwide, and branded clothing from countries like Italy (Gucci) is also offered in Iran and India. It allows customers to choose from various products depending on their tastes and preferences.
• Competitive prices: International trade increases market competition on a worldwide scale. In order to increase their export growth rate, this rivalry motivates countries to develop more high-quality commodities. On the other hand, consumers will gain from competitive pricing as producers promote more and more of their products.
• Economic Growth: Foreign investment rises as more countries engage in international trade. A factory is established in the country of origin to produce the goods directly and supply them there to lower production costs. Commodity producers typically invest in foreign countries because they are aware that foreign direct investment and the employment of labor from other countries are cheaper.