About Lesson
a. International trade is the exchange of goods and services across the national territories of different countries.
b. International trade provides the comparative advantage to the countries, as the countries can produce those goods and services in which it has the comparative advantage at a lower cost.
c. It also enhances the economic growth of the countries by:
i. increasing the efficiency of the allocation of resources,
ii. providing larger capital and product markets,
iii. assisting specialization based on comparative advantages, and
iv. increasing the efficiency of the flow of capital among countries.