International economics theory

Argumentative essay on International economics theory to real world issues. Needs to be 2 pages. It looks comprehensively at the issues plaguing international trade and its promise of increasing wealth for countries.International economics concerns itself with the effects on economic activity of global differences in productive resources and consumer preferences or tastes and the international institutions that affect them. The aspect of international economics seeks to explain the patterns and results of transactions and interactions between inhabitants in different countries. The aspect of international economics includes international trade, migration, and investment. International trade being one of the key pillars of international economics is supposed to be a voluntary exchange occurring with all the participating countries expecting to gain. Free trade increases access to goods and services that may be lacking in some countries (Enderwick 222). For this reason, in international economic, trade bridges the differences in terms of goods and services. It follows the laws and rules of supply and demand to cater for the demand of areas with low supply of certain goods and services from areas with a high supply of said products and services. International trade promotes specialization and the division of labor increasing output and consumption. As a result of international economic interdependence, economic conditions and policies in one country increasingly influence economic conditions in other countries. In addition, international trade abides by some fundamental international economic principles such as standard exchanges.The comprehension of international trade is important in critically understanding its importance and how it is the backbone of today’s increasingly globalized modern, commercial world. It helps in understanding how producers in various countries try to profit and benefit from an expanded market rather than being limited to the market within a single county. It

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