ACTIVITY 1 WHICH IS WHICH

1. The impact of international trade on the lives of people and the nations is already well-known.
It helps raise people’s standard of living. In a world where every man must depend upon the
other person for many things he needs, through international trade, a nation can obtain many
things which they need. Through global trade, people of different regions come in close contact
with each other. As a result of this, understanding, co-operation, and cordial relations tend to
build up among nations at large. Foreign trade also encourages slavery and subjugation. For
instance, the Chinese came to Africa for trade and started ruling the nation for a very long time

2. Advantage

The tax of goods can use as the source of government- Through those taxes in every product
that is being transported there is what you tax and tax use by the government for the
improvement of each country. They can use it for the improvement of roads or funds for
programs for poor people.

Improvement in the quality of goods -when there is a competition between the local producers
and foreign producers there is an improvement of the product. The consumer made sure they
were getting what they paid for so they will look for quality in a product. For example,
cellphone, every month mobile phones are getting better. There is an improvement in the quality
of goods because there is what we called competition in each country.

International trade helps the nation bring closer together- Through trade, we can all
experience the things we do not have. We can enjoy the products from other countries because of
the trade because of that, it brings each country together and it promotes peace and unity.

Disadvantages

Shortage of goods in domestic market- sometimes essential commodities required in a country

and in a short supply are also exported to earn foreign exchange. This result of shortage of these
goods in their own country.

Abuse of natural resources- constant and excessive exports can exhaust the natural resources in
a country. Like in Underdeveloped nations who have abundant of natural resources have to trade
on developed countries for their economic growth. If not checked, it can lead to downfall of the
nation natural resources.