These Are The Benefits Of Studying International Trade in Facing Global Competition

Basically, no country can meet all the needs of its own population. This is what triggers a country to carry out trade cooperation with other countries or what is commonly called international trade.

In recent years international trade has grown rapidly. Various factors influence its development, namely technology, free markets, and cooperation between countries.

Fariz Hutama Putra Harjanto, Lecturer at the Faculty of International Business Management i3l School of Business (iSB) said that international trade is marked by trade and investment liberalization, rapid progress in the communication area, information, and transportation.

“Dependence between one country and another is increasing. So economic relations both bilaterally, regionally, and internationally are very important, “said Fariz in his official statement.

Andamar Pradipta, iSB Lecturer added that international trade also plays an important role as an instrument of mobilizing science and technology (science and technology), especially from developed countries to developing countries. International trade allows a country to export products based on technological sophistication such as modern machines and tools to countries that are more in need.

“Therefore, the faster technology mobilization in the importing country will be,” said Andamar.

The purpose of international trade itself is to meet domestic needs that cannot be fulfilled due to certain limitations. Directly, the effects of international trade can be felt with resource allocation and efficiency.

Here are the benefits of international trade, let’s take a peek!

  1. Expanding Market and Increase Income

Being able to expand the market and increase income is the next benefit of international trade that can be perceived by two countries who work together. This can be done by producing optimally, without fear of overproduction and freefall selling prices.

With the existence of international trade, entrepreneurs can run their production engine to the max and sell the excess resulting product abroad. That way, high productivity will increase income.

  1. Job Opportunities are open wide

The next benefit of international trade is that you can get is a vast opening of job opportunities. This is because international trade helps generate more jobs through the development of new industries to meet product demand in various countries.

Of course, this will help countries to reduce the unemployment rate. therefore, for someone who hasn’t got a job, it will be easier to get a job.

  1. Increasing the Prosperity of a Country

The next benefit is that international trade can increase the prosperity of a country. International trade has a role to play in increasing the income of each country involved. This is because countries with advantages and disadvantages of an item can sell and obtain the product they need.

With the existence of international trade, it will make needs met and increasing income. If the state income increasing then the prosperity of the involved country will increase too.

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