Economics Economic Development Questions
The role of international trade in economic development is significant. It allows countries to specialize in producing goods and services that they have a comparative advantage in, leading to increased efficiency and productivity. International trade also promotes competition, which drives innovation and technological advancements. It provides access to a larger market, allowing countries to expand their customer base and increase their exports. Additionally, international trade can attract foreign direct investment, which brings in capital, technology, and expertise. Overall, international trade plays a crucial role in stimulating economic growth, creating employment opportunities, and improving living standards.