Gains from International Trade

Gains from International Trade International trade helps a country to export its surplus goods to other countries and secure a better market for it. Similarly, international trade helps a country to import the goods which cannot be produced at all or can be produced at a higher cost. The gains from international trade may be categorized under four heads. I. Efficient Production International trade enables each participatory country to specialize in the production of goods in which it has absolute or comparative advantages. International specialization offers the following gains. . Better utilization of resources. . Concentration in the production of goods in which it has a comparative advantage. . Saving in time. . Perfection of skills in production. . Improvement in the techniques of production. . Increased production. . Higher standard of living in the trading countries. - - International Economics