INTERNATIONAL TRADE AND ITS IMPACT ON THE GLOBAL ECONOMY

Abstract

International trade plays a key role in affecting the global economy by supporting economic progress, stimulating competition, and fostering innovation. As nations participate in the exchange of products, services, and money, they have access to resources and technologies that may not be accessible locally, leading to increasing specialization and efficiency. This research investigates the complex effect of international business on the global economy, underlining both the benefits and difficulties it provides. The positives include improved market access, economies of scale, and the lowering of production costs, while the downsides entail problems such as trade imbalances, protectionism, and the environmental effect of global supply chains. The research studies how international trade policies, such as tariffs, trade agreements, and global organizations like the World Trade Organization (WTO), effect economic results. By examining current trends and economic theories, the essay presents insights into how trade contributes to the interconnectedness of global markets, reshapes industrial dynamics, and effects income distribution across nations. The findings underscore the necessity of collaborative trade practices in ensuring sustainable economic development and reducing global inequities.