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The Impact of International Trade on Economic Growth
International trade plays a crucial role in economic growth by expanding markets and promoting specialization. By engaging in trade, countries can access a larger customer base beyond their domestic borders, allowing businesses to scale up production and achieve economies of scale. This expansion creates opportunities for innovation to meet the diverse needs of global markets. Additionally, trade encourages countries to specialize in producing goods and services where they have a comparative advantage, such as natural resources or technological expertise. This specialization leads to more efficient resource allocation, increased productivity, and ultimately, economic growth.