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