International trade between one or more than one country is a significant factor in raising living standards, giving employment opportunities and allowing citizens of a particular area to use a numerous variety of goods. International trade has occurred since the earliest civilizations began trading. But nowadays, there are many international trade laws that have become increasingly important with a larger share of GDP devoted to exports and imports. Ari Afilalo, an expert in the business transactions and international trade laws, states in his book about the variety of changes that need to be made in the existing trade laws for enhancing the businesses across the border.
Benefits of international trade-
Enhances living standard of country- In international trade, different variety of goods are purchased from different places. This gives customers a broader range of options which not only improves their living standard but also helps in the growth of the nation.
Increases efficiency in production- International trade improves efficiency in production. It is often seen that nations adopt reliable systems of production to maintain the prices down. This is done to lead the competition. Nations that generate goods at lowest rate gain a larger share of the market. Ultimately demand increases and to complete that demand, a country has to increase the production rate which is the main reason of the GDP of a country.
More Employment- Higher demand leads to high production, that automatically raises the employment rate. International trade supports in creating more employment through the establishment of innovative businesses to cater the demands of different nations. This helps countries to bring down their unemployment rates.
Consumption at a lower price- International trade enables a nation to utilize things which cannot be generated within the country or production may cost very high. So, it becomes cheaper to import from other countries through foreign trade.
Decreases trade variations- Large size of the businesses having the large supply rate results in fewer trade fluctuations. The prices of goods tend to remain more stable if there is international trading.
Utilization of surplus production- International trade enables diverse countries to trade their surplus goods to other countries and get foreign exchange.
International trade is one of the important sources of income for a developing country. But to trade with the other countries, one has to follow some international trade laws. Ari Afilalo is a professor and a specialist in international trade law, business transactions, and contracts. He has written a book named as- The New Global Trading Order- The Evolving State and the Future of Trade.