Sample Solution

crucial in many sectors of the Economy and provides millions of jobs throughout the world to small and large businesses who rely on the exportation of their products in order to thrive. However, producers are not the only ones who benefit from trade. Foreign competition helps reduce prices for consumers and gives the people a broader variety of products and services to choose from.
Due to the rise of globalization and industrialization in the recent decades, there has been a surge in international trade. The number of multinational companies has increased tenfold because people are now more aware of the different products being offered around the market. This has resulted in remarkable economic development around the globe. By selling oversees, companies have been able to achieve unforeseen levels of growth, that would have been impossible to reach, had they only been selling domestically. The growth that can be seen not only benefits the countries and the companies that partake, but also the people they employ. Due to the increase in demand of a product that is being sold overseas, companies hire more workers. By providing more jobs the economic stability of a country is improved, creating a better standard of living
Countries gain economically by trading. Why would a country produce something when it could be acquired at a lower cost somewhere else? Due to their geographical and technological differences, countries focus on producing in their area of expertise. Some countries are more efficient at producing certain products than other countries and in these scenarios, trade plays a crucial role. A great example is Saudi Arabia, who leads in the production of oil, accounting for 17% of the world’s exports, but lacks the climate to produce oranges. Without international trade, Saudi Arabians would be unable to acquire their oranges from Brazil, whose climate is ideal for orange growth. Through trade, countries have access to foreign resources they cannot produce, such as certain natural resources, and agricultural produces. In other words, global trades make resources available that could not be domestically produced. However, n