![]() ![]() Any trade liberalisation will result in winners and losers. International trade increases the quality and abundance of consumer goods, lowers prices and creates new jobs. Several studies have supported the assertion that more open economies grow more and that an increase in openness accompanies an increase in GDP/per capita.Įveryone is affected by international trade-as consumers, as workers, and through the impact international trade has on the country as a whole. ![]() Increased trade openness has been linked to increased GDP growth. These gains take the form of greater product variety, lower prices, higher quality, increased spread of technology and increased consumption by the country as a whole. Countries engage in international trade because there are gains to be realised. By specialising in the production of particular goods and services, firms within a country can produce efficiently, and trade their surplus for goods and services from other countries. Just as individuals do better by concentrating their skills and specialising in some activity - working as a baker, a teacher, a lawyer, a truck driver-and using the salaries gained from this activity to buy food, clothing, shelter and other goods and services, countries gain by specialising in the production of that range of goods and services that they are best at producing or providing. Just as it does not make sense for every individual to try to grow all of his or her nutritional requirements in his or her own back yard, it is not desirable for each country to produce the entire range of goods demanded by consumers at home. Countries trade for the very same reasons as individuals that engage in market activities: to garner the benefits of specialisation, to benefit from the effects of competition, and to expand their range of choice. International trade occurs when countries buy products and services from each other. TRINIDAD AND TOBAGO - Trade Information Database ![]()
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