International trade plays a pivotal role in the global economy by allowing countries to specialize in producing goods and services where they have a comparative advantage. Through specialization and trade, countries can access a wider variety of products at lower costs. For instance, regions with abundant natural resources can focus on extracting and exporting these resources while importing manufactured goods from more industrialized areas. This leads to increased efficiency, innovation, and productivity.
Moreover, international trade supports job creation and economic stability. Export-oriented industries provide employment opportunities and contribute significantly to a country’s GDP.