International Trade Research Paper Example | Topics and Well Written Essays - 1000 words

Inter rural areaal Trade - Research Paper ExampleTo properly project the signifi earth-closetce of foreign mountain, this essay therefore has three goals 1) to examine the aims and rationale of international trade through the examples of China and India, and lastly, 2) to comparing the effects of international trade on developed and developing countries.Developed and developing countries, however, have contrasting goals for engaging in international trade. The former, in the negative sense, aims to further their own emolument or, positively, to help the economical struggles of the latter. For their part, developing countries aim to achieve the same level of development and prosperity as the developed ones. A change from statusdeveloping to newly developedmay also change such trade goals. Generally though, trading is for survival or for the maintenance of countries economies. Countries exchange goods based on resources that are plenteous in one and resources that are scarce in the other. This has also been called by David Ricardo as comparative advantage and is one of the rationales for the existence of trade. Nation-states export goods that are produced in large quantities within the national economy, while they mo goods that are either scarce or produced in small quantities in domestic markets (Husted & Melvin, 2000, pp.60-61). Regardless of the nations capacity, profitability of production is still achievable so long as there is a comparative advantage. Although absolute advantages in the goods they produce may be absent, all economies that are operated by rivalrous markets have comparative advantages. Ricardo further proposes that no country can long import, unless it also exports, or can long export unless it also imports (as cited in Blatt, 2004). He confirms that there are benefits to be had in the import-export of goods amidst and among trading nations. Hence, engaging in both is equally essential so as to