What Are The Advantages Of International Trade

People living in developing countries on average have lower life expectancies, lower education and lower incomes. International trade through import and exports is making the global economy increasingly competitive. A move from domestic trade to a more tariff free global market has made these developing countries pivotal in the way the world moves in the 21st century. The advantages of open trade has had many implications on both the developing and developed worlds, both have benefited in certain ways and both have found complications, however overall it is not the developing world that profits from these changes. Infant businesses cannot gather any momentum in a market due to existing brands owning trade. “Their new industries are immediately exposed to full competition with established companies overseas that have capital, experience, intellectual property rights, established marketing networks and economies of scale on their side (Monbiot, 2003)”.

Before free trade, the government would make domestic production cheaper through subsidies and placing tariffs on all international products. This enabled local entrepreneurs and their businesses to succeed. As America and European countries already had such competitive advantage over the rest of the world, they forced free trade, the removal of tariffs which were hindering

ISO, GMP, CQI, all organisations calling for products to be of a certain quality. This is fine for rich countries who can meet these requirements and export around the world, but for developing countries without the technology and human skills some products are simply unable to be made and sold to compete, “it costs an average of $75,000 to develop and implement ISO 9000 certification, a sum many manufacturing firms and other SMEs in developing nations cannot afford” (Abhulimen, 2012). Without the ISO poor countries looking to enter a market are forced