Trade is the term used for the exchange of goods and services between the countries. trade is one of the greatest indicators of international economic systems. These economic relations have made access to foreign products and services possible. Like if you are exporting your products from Nigeria to UK, then in return the receiver will send money to Nigeria. The impact of trade is not just upon economies but it also has influenced the socio-cultural patterns of countries all around the world during the last few decades.
WHY IS TRADE IMPORTANT
It is true that countries cannot survive in a vacuum. They have to build relations with other countries. Such modern concepts of diplomacy have given rise to the global village effect on the world. Technological advancements like the internet have made establishments of such economic relations much easier and convenient as well.
In more economic terms, trade is a way through which countries can produce for themselves by importing different raw material from other countries which reduces the dependency. Additionally, developing countries in Africa and Asia get the opportunity to participate in the global economy through trade which helps grow their economies, creates jobs, and reduces poverty. Many people in established countries like UK are using online methods to send money to Pakistan, India, Bangladesh along with other African countries. Trade system has the tendency to build peaceful relations among the countries. Rich countries participate to help the poor countries to develop. Also, infrastructure building is another benefit of trade for the developing nations as the developed countries can help them in this regard.
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