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A very well known form of international trade is known as mercantilism. This economic trade began in the sixteenth and seventeenth centuries, and offered wealth to countries that expanded their trade barriers to allow local products of low abundance to be bought from places with high quantities of these goods. Adam Smith wrote the "Wealth of Nations," providing many aspects to economics. In this text he stressed the principle of absolute advantage. An absolute advantage is a good that can be produced more cheaply by a nation than it can by its trading partners. This is an idea promoting foreign trade, which says that a country that trades internationally should specialize in producing only those goods in which it has an absolute advantage. Ideas like these are the basic reasons why international trading is so serviceable to economies of any
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Small draw backs like personal insecurity, unfair competition, and discrimination have been aimed at preventing the expansion of globalization. These slight side-effects however, do not measure up to the many benefits of interdependency among nations. Every nation has its own fair shot at trading with other nations. It is up to the country whether or not it chooses to relate economically with foreign nations, but it is strongly suggested that they do. Absolute advantage is a great way for a nation to cheaply produce merchandise and goods to sell at a profitable rate. There are many more advantages of trade to be discussed. International trade leads to more efficient and increased world production, thus allowing countries and individuals to consume a larger and more diverse bundle of goods. A nation possessing limited natural resources is able to produce and consume more than it could otherwise. The establishment of international trade and investment expands the number of potential markets in which a country can sell its goods. The increase in international demand for goods will develop into a greater need for production, thus requiring more extensive need for laborers. This not only results in increased cash flows, but also commits to a growth in domestic employment. It is the opinion of most economists and economic critics that the expansion of globalization is to the advantage of the world economy as a
Small draw backs like personal insecurity, unfair competition, and discrimination have been aimed at preventing the expansion of globalization. These slight side-effects however, do not measure up to the many benefits of interdependency among nations. Every nation has its own fair shot at trading with other nations. It is up to the country whether or not it chooses to relate economically with foreign nations, but it is strongly suggested that they do. Absolute advantage is a great way for a nation to cheaply produce merchandise and goods to sell at a profitable rate. There are many more advantages of trade to be discussed. International trade leads to more efficient and increased world production, thus allowing countries and individuals to consume a larger and more diverse bundle of goods. A nation possessing limited natural resources is able to produce and consume more than it could otherwise. The establishment of international trade and investment expands the number of potential markets in which a country can sell its goods. The increase in international demand for goods will develop into a greater need for production, thus requiring more extensive need for laborers. This not only results in increased cash flows, but also commits to a growth in domestic employment. It is the opinion of most economists and economic critics that the expansion of globalization is to the advantage of the world economy as a