eli5, who benefits and who loses from a country trading internationally? Discuss the importing and exporting country.

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eli5, who benefits and who loses from a country trading internationally? Discuss the importing and exporting country.

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Anonymous 0 Comments

In the long run international trade has a positive effect on economic grown and stability for all countries involved. In an ideal world — and usually in the real world — it’s a win-win. Everyone imports and everyone exports and everyone benefits.

But in the short run international trade can be controversial if industries in one country have trouble competing with industries in another country. Furthermore dependence on imports can impact national security. So there are often political pressures to protect home industries, even if in the long run that jeopardizes economic growth and stability.

Anonymous 0 Comments

Broadly, everybody benefits from international trade, as it allows countries to specialize in what they do best, export that, and import what they need that others do well. More efficient for Country A to export cars from and import grain from Country B than both countries try to build smaller car companies and grow grain to feed just their countries. Larger operations, more expertise, better climate, etc. mean the costs to produce cars and grow grain will be lower and thus residents of both countries have more money left to buy phones from country C and fruit from country D.

Losers may be domestic industry that cannot compete with outside producers. If Country A had grain farmers, but their quality was worse and cost higher, they they won’t be able to compete and their farms may fail. They may have to find a new profession and use for their land.

Anonymous 0 Comments

Does your teacher have any other prompts you would also like us to answer?