Benefits
- Increased competition
- Greater efficiency. Higher costing firms goes out of business.
- Lower prices for consumers
- Greater choice for consumers
- Acquiring needed resources.
- Source of foreign exchange
- Access to larger markets: Canada trading with the US allows to be selling to 440 Million instead of 40 Million. Leads to more efficient market.
- Specialization, leading to comparative advantage.
- Trade as an engine for growth.