Since the beginning of civilization, trade has been a
practice carried out naturally between human groups. With the passing of time, this
trade evolved and become an increasingly sophisticated process, optimizing the
interaction between its participants. Ari Afilalo, an expert in international trade has been analyzing the essential factors in the evolution of
international trade for over three decades.
With this evolution, the need arises to exchange goods and
services in a context other than the regional one; that is to say, worldwide.
This is how the concept and importance of international trade arise, which is
understood as the commercial exchange between different countries, seeking to
satisfy the needs and demands of their markets.
Scientific and technical knowledge have always been the most
important factors underlying economic progress, so the basis for the
adjustments of the structure of world trade which will in any event be
necessary is already available for us to build on.
The importance of international trade in the world has been
widely studied as it examines the role of international trade in the various
issues. Most of the research carried out by Prof. Ari Afilalo is focused on the
relationship between Economic Development and international trade. Bellow, Mr. Afilalo
discusses the main advantages of international trade.
What advantages does participating in international trade offer countries?
Participation in international trade or foreign trade allows
countries to have multiple advantages that result in the strengthening of their
economy. Here Ari Afilalo, a tenured Professor of Law tell you what they are:
Better use of resources
One of the benefits that countries obtain by participating
in international trade is to improve their productive efficiency, as well as a better
use of their available resources, managing to optimize production costs,
generating employment and, consequently, growth in the economy. .
Lower production costs
For products that have a high production cost due to the
lack of some resource, international trade allows importing these products from
countries whose production of these products is cheaper.
Access to a greater variety of goods on the market
With the globalization of markets, the entry of new
companies, products and services in foreign markets is facilitated, giving us
easy access to products that otherwise could not be acquired in a market.
Job creation and growth of the economy
One of the great benefits of foreign trade is the creation
of jobs, which translates into growth in a country's economy; This is thanks to
the fact that it allows trading not only in the local market, but also
internationally.
Marketing of surplus products.
International trade allows all surplus goods to be traded in
foreign markets when the production of these products exceeds local demand.
According to Ari Afilalo, international trade offers a
consumption possibility frontier that can give us more of all goods than can
own domestic production possibility. The extension of foreign trade, will very
powerfully contribute to increase the mass of commodities, and therefore, the
sum of enjoyments.
