Economics Market Economy Questions
The role of international trade in a market economy is to facilitate the exchange of goods and services between countries. It allows for specialization and comparative advantage, where countries can focus on producing goods and services that they are most efficient at, and then trade with other countries for goods and services that they are less efficient at producing. International trade also promotes competition, innovation, and economic growth by exposing domestic industries to global markets and encouraging efficiency and productivity improvements. Additionally, it provides consumers with a wider variety of choices and lower prices, as they can access goods and services from around the world.