Trade can promote economic development from "summary" of Economic Development by Michael P. Todaro,Stephen C. Smith
Trade plays a crucial role in promoting economic development by allowing countries to specialize in the production of goods and services in which they have a comparative advantage. By engaging in international trade, countries can access a larger market for their products, leading to increased production and economies of scale. This, in turn, can lead to higher levels of economic growth and development. Trade also facilitates the transfer of technology, knowledge, and skills between countries, which can help developing countries improve their productivity and competitiveness. Through trade, developing countries can learn from more advanced economies and adopt best practices to enhance their own industries. This knowledge transfer can lead to the development of new industries and the upgrading of existing ones, contributing to overall economic development. In...
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