1. Helps the emerging economies to get into a larger market - This is especially true for the developing countries.

If I have to take the example of India, after the 1990′s market liberalization, the Indian market attracted great levels
of foreign direct investment (FDI). A good example would be, how American and European businesses have
outsourced their service sector jobs such as data processing and customer service to African or Asian countries. The
same is true when developing countries find a profitable market in developed countries. It allows businesses in
developing countries to become part of international production and supply chain. If you look at the countries of
East Asia, trade liberalization has been an important element in their economic success.

2. Transfer of Technology - With the transfer of service sector jobs from industrialized to less industrialized
countries. It makes it easier and cheaper for the emerging countries to enter the global market. Does bringing in
capital through foreign direct investment.

3. Reduces the brain drain effect - with trade liberalization, outsourcing has become the new norm. And it
definitely helps to prevent the so-called brain drain effect. The skilled workers may now choose to remain in their
own country rather than migrate to a developed country to find work.

4. It can help in reducing poverty - Today in China poverty exist only in rural area. However there was a time
when the economy wasn't that strong and urban poverty existed along with rural poverty. But then if you see in the
past 3 decades china has dramatically progressed in reducing poverty. And this is where I am going to point towards
international trade being a factor that helped in reducing poverty. China opened its economy in 1978. To attract
foreign investment, China started giving incentives such as tax concessions, reductions in land use fees and
favourable labour prices. By bringing these reforms, China's economy took off and it is now the fastest growing
economy in the world.

5. International and regional co-operation - Intergovernmental agreements are often part of international and
regional co-operation. This allows different countries to come in contact with each other and benefit culturally and
commercially. South regional trade blocs are - SAARC, EU, ASEAN, NAFTA, Pacific Alliance, African Union etc.

Let's look at the negative effects -

1. Negative impact on the global environment - Increase in domestic consumption of imported goods,
environmental pollution caused by outsourced production and transportation of goods. These are some negative
effects of international trade on the global environment.

2. Negative effect on domestic market - With increase in international trade, the demand for foreign product rise
which leads to increase in imports. Imports offer domestic consumers greater choices, a wider range of quality, and
access to lower-cost goods and services. But it also creates competition and forces domestic producers to increase
the quality and at the same time reduce cost. This also causes inflation.

3. Economic dependence - With rise in international trade, the developing countries have to depend upon the
developed countries for their economic development. This kind of dependency leads to economic and political
exploitation.

4. Breeds rivalries - Due to high competition, international trade can often hamper international and regional
cooperation among member nations. It can bread jealousy and rivalry among member nations. It sometimes lead to
wars. Some of the historical wars - opium wars (British Empire and China), Anglo-Dutch war (1652), American
Revolutionary war (1775-1783), Iraq invasion of Kuwait.

In order to find some more negative effect about international trade, you can simply think opposite to the positive
effects.