International trade for developing countries

The Impact of International Trade for Developing Countries
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The Impact of International Trade for Developing Countries
International trade has increased business investment and opportunities. Through the development of the private sector, production has been significantly boosted. This increase has led to the reduction of poverty levels and improved development. International trade has opened new markets for developing countries allowing them to diversify their exports and set up new production options. International trade has created employment opportunities by improving economic sectors, thus improving the living standards of citizens (Cherkas, 2018). Through international trade, countries have been able to strengthen ties by creating mutually beneficial trade agreements which contribute to peace and stability. The GDP per capita of less developed countries has steadily increased with the increase in international trade and foreign investment. Increased international trade has helped emerging economies such as India, China, Brazil, and South Africa grow to the levels of developed countries (Cherkas, 2018).
International trade does have several disadvantages. It has led to an increase in job outsourcing and the destruction of local cottage industries. Flooding the local market with cheap imported products prevents small-scale producers from making the profit from their industries. This leads to unemployment, crime and poverty. India was flooded with cheap cotton from Japan, almost ruining the local cotton industry.

International trade has led to the degradation of natural resources. According to Cherkas (2018), “Most of the developing countries do not have sufficient environmental protection policies, thus minerals, timber, oil, and other resources can get completely exhausted. The Amazon jungle is one example of this.” Due to logging for exportation the largest rainforest in the world is in danger of becoming a wasteland. Trade rivalries have led to wars. The World Wars were because of such misunderstandings (Cherkas, 2018).
Reference
Cherkas, N. I. (2018). The New Paradigm of Globalization. Business Inform, 3(482), 52-59.