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International Trade Benefits

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Set forth and explain in detail five ways a business organization can benefit from international trade.

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This solution identifes and explains five ways a business organization can benefit from international trade.

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RESPONSE:

1. Set forth and explain in detail five ways a business organization can benefit from international trade.

International trade in goods, services and financial capital represents the efforts of companies and individuals, both United States (or Canada) and foreign, to optimize their production and consumption patterns. (2) There are many reported benefits from international trade.

According to USDOC, for example, two of the benefits of international trade are higher paying jobs and jobs that are more secure.

? 95% of the world's population lives outside the U.S.
? Export-related jobs tend to be good, high-paying jobs.
? Wages of workers in jobs supported by merchandise exports range 13-18% higher than the national average.
? Export-related jobs are also more secure: Exporting plants are 9% less likely to shut down than comparable non-exporting plants. (1)

There are other economic and business-related benefits from international trade. For example, both the economy and the company gains from exporting by enhancing domestic competitiveness, gaining global market share and diversifying/reducing dependence on existing markets. This has economic utility and allows the market to reach its full potential. (2) It also extends the life cycle of existing products. It ...

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