The importance of international trade is listed below

The importance of international trade is listed below:

Makes the market broader: If the country has a closed economy they do not have exposure to the world wide products. The buyers also have limited products to buy from. By expanding into the market of the other countries the company grows in size and their profit increases.
Manufacturing cost gets lower: By expanding their business into other countries the big companies stands at a level of increasing their profit by buying raw materials from the company where they are produces so that they are available at a lower cost. The production unit can be set in the developing country where the wage of the labor is low. This way the company can save a lot of money and increases the profit earned by them.
Makes the material available: If there was no international trading most of the products sold would not be available in the market. Through international trade all the raw materials get available for use. International trade also curbs the scarcity of food worldwide. Many fruits and vegetable cannot be grown in the temperate climate of UK so they are exported from the tropic countries. Bananas and mangoes are the most widely used exported fruits. (Lesley, 2016)

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