IMPORTANCE OF INTERNATIONAL TRADE

·         Some raw materials do not occur naturally in the country has to be imported.

• It is cheaper to import some goods than to produce them. For example bananas in UK.
• Selling goods and services abroad provides the country with foreign currency.
• By selling abroad the country gains the benefits of wider markets.
• International trade creates employment opportunities in the country
• Consumers in the country will have a wider variety of goods from all over the world.
• It increases country’s income, which results in a higher standard of living.
• It helps to maintain friendly foreign relationships with other countries.
• Income can be earned by exporting the excess goods and services.