1. International trade can be beneficial if you can produce a
product cheaper than other countries, and have access to their markets without the imposition of trade tariffs, e.g. thdre are free trade agreements with other countries. This allows you to sell your goods competitively in their countries. This means that your country benefits from the increased sales and the welfare of the citizens in your country increases. However, there are some instances where trade tariffs are needed, for example to protect an emerging industry from foreign competition before it can get established and compete in the open market. In this case, free trade agreements would make it difficult to get a new business started because of the established competition or competition from larger operations in other countries where labor and/or supplies are cheaper.
2. First, free trade is usually good for all parties concerned because it allows the free flow of goods between countries and improves the welfare of those living in countries with a large labor force and little industrial strength or little in the way of natural resources. They can rely on labor-intensive work such as agriculture and trade in the open market for goods they need. Secondly, countries buying in a free trade market are able to buy goods cheaper than they could if they manufactured/grew them themselves because of differences in labor costs. Thirdly, there are cases where trade tariffs are needed, such as to protect emerging industries from foreign competition until they become established and can face competition in the open market. Fourthly, the whole basis of international trade is competitive advantage.
3. In my business, a pain management clinic, we outsource the transcription of MRI reports to India. This is because the rates for this service are much less in India than in the United States. This is an example of free trade at work. India has a commodity to sell:...