How doew a country gain from international trade and investment?
Answers
A country gains from net exports. Due to international trade, a product made in China or India can be sold in US, Canada, Europe, etc. The value of such product is added to the GDP of the countries where the product has been manufactured (here it is China or India). This also helps the country receiving the product as the cost of the product is low compared to if the product was made in their own countries. This is due to high cost of labour and input(raw materials, capital, etc). Thus, International trade helps to increase the GDP of a country and also reduces the cost of products for the citizens of the countries receiving it.
Further, there are many countries which are not self - reliant and depends on imports. The countries which have excess supply of goods can export it to such countries. Thus, International trade helps certain countries to survive and sustain.