What are the Advantages and Disadvantages of international trade?



Advantages of international trade
•        A country can obtain what is not available in her country.
•        Excess goods can be disposed to where goods are in shortage.
•        Goods to be involved increases the variety of goods for the citizens and hence likely to improve their standard of living.
•        It enables countries to concentrate in production of goods for which they have the greatest advantage over others. This would lead to greater volume of production and cheaper prices. Thus, a consumer from Tanzania may be able to buy a good from Kenya at cheaper price than if he was to buy a Tanzania goods.
•        It promotes peace among countries, which trade each other, because a country is unlikely to go into war against the other, which feeds her.
•        It promotes healthy competition, which would otherwise not exist in the prevalence of monopoly e.g. monopoly would encourage charging exorbitant prices. 
•        At times of calamities e.g. droughts, supplies may be easily obtained from other countries.
•        International trade promotes understanding among citizens of the trading nations since they visit each other during trading

Disadvantages of international trade
•        Some countries may excessively specialize in one commodity for exporting which is problematic in case of say unfavorable price fluctuations of that particular good e.g. Zanzibar depends heavily on clove exportation.
•        Where a country exports mainly minerals, it may extract to an extent that runs out of deposits and end up with nothing else to export to finance her imports. 
•        Goods imported from advanced countries may adversely affect the achievement of under developed countries in their latter’s endeavor to reach the state of self-sufficiency. This may kill infant industries.
•        If a country depends solely on a particular country for a certain commodity it may sometimes have to tolerate some undesirable gestures from that country e.g. frequent price fluctuations.
•         Some of the imported goods may have adverse effects to the citizens of an importing country e.g. harmful drugs may find their way despite the prevalence of customs procedures.

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