International trade is an age-old concept. It has been there since 14th-15 century. The silk route was used to transport spices and silk among the Asian countries. The 1700s resulted in transport and trade among the empires through the huge sailing ships. Since then, the international trade has revolutionized. The foreign trade has a huge impact on the domestic economic development. Ari Afilalo, an expert on international trade law emphasized in his new book how international trade can open the gates of development for a developing country.
Role of international trade in economic development
The majority of countries export their domestic agricultural products and import the capital goods. The economic development of a country is in direct correlation with the GDP and growth.
International allows the country to earn money. This influx of currency is used to develop the country and improve the living conditions of the citizens.
International trade opens up the new markets for the domestic businessmen. This offers the opportunity to expand their markets and grow economically. This growth will also increase the employment opportunities in the market. This is very beneficial for the countries where there is a limited market for business opportunities.
Due to international trade, the domestic market gets open to new investors across the world. More institutions and countries investment brings the influx of money and employment opportunities. This investment is necessary in the age of globalization.
Open to international trade, a country, and its citizens earn through import and export of good. This increases the influx of money. As citizens have money to save, they invest their money in the country. The money becomes the major factor in the development of the country.
Want to more about international trade and the international trade laws? Read The new global trading order, an in-depth book authored by Ari Afilalo. Ari Afilalo is an expert on the international trade law. He is also a proud and responsible member of the Sephardic Jewish community.