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dTap Cengage Learning- Mozilla Firefox https://ng cengage.com/static nb/ui/evo/index.html?deploymentid= 5746 101 810004 1491 026330904&elSBN:9781 337622042&id=3595968098 snapshotld:91 75398 MINDTAP From Cengage Q Search this course ernational Trade Writing Prompt MY Editors MY Tutor® MyACCESS Writers Model Editor Only nternational Trade international trade has been a great boon for many countries and, in general, has been more beneficial for the world than not. However, there are both costs and benefits associated with international trade. Present and discuss two advantages of international trade and two disadvantages of international trade Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to y response in a clear and logical manner as appro standard American English your audience Organize your e and correct conventions of priate for the genre of writing Use well-structured sentences, audience-appropriate languag B IU I Styles Normal e Type here to search

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Two advantages of international trade -

I) Optimal use of natural resources- A country makes it's trade decision based on its comparative advantage and specialization. Trade allows the country to use its natural resources in the production of the good only in which it has comparative advantage. This reduces wastage of resources.

II) Increase in economic growth - International trade allows each country to produce more efficiently to compete with world market. It also increases total Surplus of a country, causing an economic growth.

Disadvantages of international trade -

I) Increase in unemployment : Trade causes a country to specialize in the production of the good in which it has comparative advantage. The other goods which were being produced in the country before trade, are not produced anymore. This causes the workers of that forgone goods production sector to loose their job.

ii) Economic exploitation of underdeveloped countries : Most of the time underdeveloped countries rely on developed one for their country's growth and economic development. This sometimes lead to exploitation of those underdeveloped countries.

For example- European countries have exploited many underdeveloped Asian and African countries for many years.

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