International Trade for developing Countries.

The trade between two or among more than two nations is term as ‘International Trade’. But it is not our purpose we need to analyze this definition more practically than it is defined. A lot of thanks to economist that gave us this theory and helped the under developed countries or even advance to increase their trade volume, export and import.

The theories explains that the country should produce those goods in which cost of production to be lower than the others. Means Pakistan should refine oil if it cost level (expenses) is lower than other countries and if the cost of refining oil is high than other countries then it stop refining and should import oil from foreign countries. And if refining oil is lower then it will export oil and it is called ‘Comparative Advantage’ in International Trade.
Unfortunately, Developing countries like India, Pakistan, Nigeria, Zimbabwe etc. all having numbers of other problems that are barriers in between economic growth and development. Like foreign investments in all these countries are low comparatively to developed nations. Political system is complex, Taxation policy is unsatisfactory, no control on currency, high corruption, law and order threats and so on. All these issues exist in all the Developing countries of the world. All such bad sectors can be removed by one changing and by that changing the whole system would change and this is just possible through International Trade.
International Trade can help developing countries to increase their life standard. They can make trade policies or to amend therein. If a developing country say ‘A’ connect with other country ‘B’ which is specialized in making a specific material say ‘Iron’ and country ‘A’ specialized in say ‘Copper’ and then country ‘A’ export it copper and import Iron from country ‘B’ it will boost their bilateral relationship. Investment level increase, flow of money take place, labor force will be exchanged, Import/Export duty rate will be revised, price level will change, Inflation will decrease, Income level will increase, purchasing power will change, currency value to be up, balance of Payment will get equilibrium point, interest rate will change and the whole monetary policy will further improved, it means growth take place and as a result development will be, and all shall be due to International trade.
So we saw that with little transaction the whole system will change then you should assess broadly for bigger level trade with more than one nation and compare the result with image drawn above. So every country must revise it trade policy lest it should fail in international market. There may be some disadvantages of international trade but we should always think for positive and fruitful outcomes.

Regards; Muhammad Asad Ishaq.
Hoping for your comments and suggestions.