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International trade basically is under construction on the same principles, as
Any other voluntary exchange: the trading parties make and consume
More than it would be possible otherwise. There are three
The reasons on which international trade is favourable to all parties.
First, in the presence of international trade inhabitants of each country
Have an opportunity to use more than the resources that
To make and sell those things by which they do better others,
Directing a gain on purchase of those goods which they can make
Only with high costs.
The world countries differ the resources, and these distinctions affect on
Production costs. The goods, which manufacture manages expensively in
To one country, can be made with low costs in other countries.
Inhabitants of each country win, specialising on manufacture of the goods,
Which they can make with rather low costs. For example,
The countries with a warm, damp climate, such as Brazil and Colombia, find
Favourable coffee cultivation. Canada and Australia where it is a lot of the earth, and
The population is dispersed on the big spaces, specialise on
Wheat, forage crops and beef. Japan, where the earth - more
The scarce resource, but is available a highly skilled labour,
Specialises on videocameras, cars and electronics. As a result
Such specialisation and international trade cumulative manufacture
Increases, and people have possibility to live more richly.
Secondly, international trade allows as manufacturers, and
To consumers to win from reduction of an unit cost
Thanks to creation of large-scale manufactures.
It is especially correct concerning the small countries. Trade gives
To manufacturers possibility to run business in a big way and by that
To achieve lower costs. For example, the textile companies in
Hong Kong, Taiwan and South Korea would have much higher averages
Costs, there will be no at them a possibility to sell the production abroad.
Home market for the textile industry in these countries would be
It is too small, that the big firms could work with low expenses. In
International trade conditions the textile companies of these countries
Are capable to make and sell great volumes of production, quite successfully
Competing in the world market.
International trade brings benefits and to consumers in the country,
Allowing them to buy the cheap goods from large foreign manufacturers.
As the proof of it the aviabuilding industry can serve. At
Huge costs of designing existing in this branch and creations
Planes, the market capacity almost all countries would be much less, than
It is necessary for effective manufacture of jet liners. However
Thanks to international trade consumers all over the world have
Possibility to get planes at such large-scale manufacturers,
As "Boeing" or "Makdonnel-Daglas".
Thirdly, international trade promotes a competition on the internal
The markets also allows consumers to buy the diversified goods with
All world under the reasonable prices.
The competition from abroad helps internal manufacturers to hold an ear
- , forcing them to improve quality of production and to keep
Costs on a low level. Besides wide assortment of the goods because of
Borders gives to consumers a much bigger freedom in choosing.
The recent study of motor industry of the North America serves
To the aforesaid a good illustration. Having faced a rigid competition
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