Benefits of International Trade:
Obtaining goods you cannot produce domestically (tropical fruit in UK or wine in Indonesia)
Obtaining goods ( and raw materials) that can be produced cheaper abroad
Allowing you to specialise and sell abroad
You can benefit from bigger markets and economies of scale
Greater consumer choice
Increased competition leads to increased efficiency and lower prices
International trade can lead to economic growth and an improvement in the standard of living
Disadvantages of International Trade
Overspecialisation- what happens if demand falls; what happens if another country is better than you?
Balance of trade deficit
(Structural)Unemployment.
lower economic growth ( more imports=less D for domestic output)
environmental impact
Reasons for Protectionism