Unrestricted Cross-border Trade International trade can be defined as the exchange of goods, services or capital between two interested parties, located within different national boundaries. A number of factors may explain why countries potentially gain from trade, including differences in absolute and comparative advantage, differences in resource endowments or demand patterns, economies of scale effects, and the possible benefits of increased competition. There are also a number of factors that may explain why a country …
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showed last 75 words of 945 total
…sectors and the desire to maintain certain traditional ways of life and culture. The arguments for and against protectionism imply that there are legitimate arguments for restricting international trade and there are illegitimate ones. Hence, protectionists measures need to be used with care. International trading activity is unequivocally neither good nor bad. The optimum solution then is to regulate international trade in a way that is both efficient and fair for all the trading partners.