International Trade Theory

International Trade Theory
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International Trade Theory
Why the International Trade
Economic Theory Perspective
Countries engage in the international trade to allow them to utilize their resources in a more efficient way via specialization. Trade enables industries and employees to be more productive. The productive results assist in maintaining the cost of several day-to-day products and services low, converting into higher standards of living (Cavusgil et al., 2014). When there is not international trade, many countries will not manage to obtain food, clothing, and shelter, which are the necessaries of life, for their citizens at current stages. The resource-rich nations, including the U.S., would undergo immense difficulty with no international trade. Not all the types of food would become available, or they will be available but very unaffordable (Cavusgil et al., 2014). For example, sugar and coffee would be luxury items because there would be no exchange of different product without the trade. Countries involve in the international trade to create chances for employment for their multitasked workers, obtain products, services, and other resources that they cannot produce, improve the social interaction between countries, enhance the living standards of the citizens, and improve the modern life, national prosperity, and civilization among nations participating (Krugman, Obstfeld & Melitz, 2015).
Practical Perspective
With regards to civilization, the international trade helps improve the advancement of civilization among nations.

Firstly, the international trade leads to the development of modern technologies, such as the modernized railroad. Countries exchange and adopt the new technologies from others while trading, leading to the improvement of the infrastructures and social amenities (Helpman & Razin, 2014). Moreover, different countries share varied cultures, which are incorporated in the individual countries’ traditions. The newly created cultures, such as collectivism, can allow a nation to progress economically, politically, and socially. Ultimately, the exchange of ideas and knowledge among nations can eliminate the traditional ways of thinking and introduce the modern ways of operating business, thereby improving the civilization (Krugman, Obstfeld & Melitz, 2015). 

References
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International Business. Pearson Australia.
Helpman, E., & Razin, A. (2014). A Theory of International Trade under Uncertainty. Academic Press.
Krugman, P. R., Obstfeld, M., & Melitz, M. (2015). International Trade: Theory and Policy. Pearson.