Answer to Question #43814 in Economics for thabisile

Question

local and international trade has expanded in recent years ,posting ,both , as a threat and opportunity to the households and firms.what are the opportunities of international trade ,and how it benefits households and firms ?

Answer 1

International trade gives a huge opportunity interms of a sufficient increase of the customers’ pool. 
Beside of that, the producers can sell theirproducts at a considerably high price (in the countries, where there is a deficit for a certain product) or buy recourse at a lower price. Due to the international trade the customers candiversify the supply of a certain product removing monopoly. 
The population ofdeveloping countries can have an access to the more qualitative import products.