4 Trade: free Vs restricted trade in developing economies –

International trade

International trading was key to the rise of the global economy.

In the global economy, supply and demand and thus prices both impact and are impacted by global events.

Global trading allows wealthy countries to use their resources, for example, labor, technology, or capital.

Different countries are endowed with different assets and natural resources: land, labor, capital, and technology, etc.

This allows some countries to produce the same good more efficiently, more quickly and with less of a cost.

Therefore, they may sell it more cheaply than other countries.

If a country cannot efficiently produce an item, it can obtain it by trading with another country that can.

This is known as specialization in international trade.

Can a developing country by its own actions determine how much and which products and services it buys or sells?

Under what conditions can trade help a nation to achieve its development objectives?

1000 words UK English