How does international trade help Pakistan's Economy?

Geography

1 answer:

loris [4]3 years ago

5 0

Answer:

International Trade helps the Pakistani Economy by allowing Pakistan to specialize in those economic sectors for which it has a comparative advantage, while being able to import, at a lower cost, those goods and services that would otherwise be too costly to produce domestically.

Explanation:

For example, because Pakistan is not as developed as Germany, it does not produce as many high quality cars as that European country. However, thanks to international trade, Pakistan can import German cars that benefit the Pakistani economy in many ways: as trucks to transport goods, as private automobiles for individuals, or as buses.

Germany, at the same time, can import some agricultural goods that Paksitan can produce at lower prices due to geographical and climate reasons.

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~Hello there! ^_^

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