Advantages and Disadvantages of International Trade

Advantages and Disadvantages of International Trade-

Advantages of International Trade-

(i) Optimal use of natural resources

(ii) Availability of all types of goods

(iii) Specialisation

(iv) Advantages of large-scale production

(v) Stability in prices

(vi) Exchange of technical know-how and establishment of new industries

(vii) Increase in efficiency

(viii) Development of the means of transport and communication

(ix) International co-operation and understanding

(x) Ability to face natural calamities

(xi) Other advantages

Disadvantages of International Trade-

(i) Impediment in the Development of Home Industries

(ii) Economic Dependence

(iii) Political Dependence

(iv) Mis-utilisation of Natural Resources

(v) Import of Harmful Goods

(vi) Storage of Goods

(vii) Danger to International Peace

(viii) World Wars

(ix) Hardships in times of War