Global/International Trade :

Trade is the exchange of goods and services. It can be domestic trade and international trade.
Exchange of goods and services within a country is known as domestic trade. Exchanges
of goods and services along the international borders are known as international trade..

"The purchase of goods and services by the citizens of one country from the citizens of
another country is the global trade."

Global trade consists largely of interchange of goods between producers who enjoy
similar standards. International trade often consists of the interchange of goods
between producers .

In each and every country, production of each and every goods and service is not possible. To
fulfill all the needs of humans without a global trade is impossible.

ADVANTAGES OF GLOBAL TRADE:

1. Generates employment opportunities

Global trade is one of the big platforms for the employment opportunities. It provides direct
employment opportunities to the people for theimports and exports of the goods and services.

2. Availability of necessary goods and services

Needs of human are unlimited and it increases day by day. But all needs cannot be fulfilled
within the country's production. In such case, Global trade plays a vital role in the availability
of needed goods and services within a country.

3. Equality of prices

Global trade stabilizes the prices. It helps to keep the demand and supply position stable,
which in turn helps to stabilize the prices, making allowances for transport and other
marketing expenses.

4.Multiple choices

Global trade helps in providing multiple choices in the market. It helps in making available
all the varieties of goods and services tothe consumers in all nations of the world.

5.Economic development

Imports and exports help in the economic development of a country. This is because, with the
import of capital goods and technology, a country can generate growth in all sectors of the
economy, i.e. agriculture, industry, and service sector.
6.Generates world peace: Global trade makes a good relation among the nation. It provides
the service of technology and other assistance from developed countries to developing
countries. It brings the nation closer due to economic relations arising out of trade
agreements.

7.Raise standard of living

People can raise their living standard with international trade. International trade imports the
new and better varieties of goods and services..

8.Assistance during natural calamities

During natural calamities such as earthquakes, floods, landslides, etc., the affected countries
face the problem of shortage of essential goods. Global trade helps that country by importing
food grains and medicines from other countries to help the affected people.

DISADVANTAGESOF GLOBAL TRADE

1. Danger for infant industries

Underdeveloped country highly lacks technology and quality. In such situation, the infant
industries of the country cannot compete with the products of developed country. As a result,
they lose heir demand even in the domestic market and the company may collapse.

2.Environmental degradation

Global trade may lead to environment degradation by the over utilization of natural resources.
The multinational company tries to use natural resources irrationally which results in
environmental degradation.

4. Loss of cultural identity

People think that the lifestyle in the developed country is more effective than that of
developing country. So, the people of developing country try to copy the lifestyle of the
people of dveloped country. As a result, there may be the loss of own cultural identity in
developing country.

5. Political instability

Political instability is the likelihood of having demonstrations, forms of violence, workers

going on strike, etc. Foreign trade may lead to political instability between countries that are
a competitor.