Explain the positive and negative impacts of international trade?

Positive impacts of international trade:

1. Economic growth: International trade allows countries to specialize in producing goods and services that they are most efficient at, leading to increased productivity and economic growth.

2. Increased consumer choice: International trade allows consumers to access a wider variety of goods and services at competitive prices, leading to greater choice and quality of products.

3. Job creation: International trade can create new job opportunities in industries that are able to export goods and services to other countries, leading to increased employment and income levels.

4. Technology transfer: International trade can facilitate the transfer of technology and knowledge between countries, leading to innovation and improvements in production processes.

Negative impacts of international trade:

1. Job displacement: International trade can lead to job losses in industries that are unable to compete with cheaper imports from other countries, leading to unemployment and economic hardship for affected workers.

2. Environmental degradation: International trade can lead to increased production and transportation of goods, which can contribute to environmental pollution and depletion of natural resources.

3. Exploitation of workers: International trade can lead to the exploitation of workers in countries with lower labor standards, as companies may seek to cut costs by outsourcing production to countries with lower wages and weaker labor protections.

4. Dependency on foreign markets: Countries that rely heavily on international trade for their economic growth may become vulnerable to fluctuations in global markets, leading to economic instability and uncertainty.

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