Role of International Trade in Economic Development- Ari Afilalo
International trade is not a new concept among different countries. In the past there were several noticeable instances of international trade. In 14th and 15th century traders used to transport silk and spices through silk route. In the 1700s fast sailing ships used to transport tea from China to different European countries. Foreign trade also has a big impact on economic development.
Role of foreign trade in economic development
The role of foreign trade can be judged by the following faces:
Foreign trade and economic development
All the countries export a lot of agricultural product to other countries and import capital goods. Hence, it the economic development of a country highly depends of foreign trade.
Foreign exchange earning
Foreign trade provides foreign exchange that is used to remove the poverty and for other productive purposes.
International trade plays an important role in increasing the production of any country. The foreign trade is remarkable factor in expanding the market and encouraging the producers. In countries where home market is limited it is necessary to sell product in other countries.
Increase in investment
Foreign trade encourages the businessmen to increase the investment to produce more goods. So the rate of investment increases.
Foreign trade provides incentives for the foreign investors, besides local investment, to invest in those countries where there is a shortage of investment.
The significance of international trade on economic, political, and social conditions has been theorized in the Industrial Age also. It is essential for the growth of globalization.
Ari Afilalo, an expert professor and researcher on international trade, has a strong insight over this method. His research and training are based on methods like:
- International trade
- International business transactions
- European Union laws
He is also a proud and responsible member of the Sephardic Jewish community. He is a celebrated author of the book the new global trading order