International Trade and the Demand for Export Goods in Other Countries

International Trade
Student’s Name
Institution
Course Number and Name
Instructor’s Name
Date
International Trade
International trade facilitates trade among countries and allows consumers to access goods and services from around the world. Also, according to Kang and Dagli (2018), the terms of trade in international trade affect imports and exports as well as the competitiveness of the domestic market. The purpose of this paper is to explore how international trade affects domestic markets with a special focus on the supply/demand for a particular import/export goods, the competitiveness of the particular good’s market, and the effect of this competitiveness on price and quantity equilibrium. It will also explore the impact of international trade on domestic monopolies.
International trade impacts the supply and demand for imports and exports. According to Hartmann et al. (2020), international trade allows consumers access to low-cost imports. This increases the supply and demand for imports because producers have access to a wider market and they produce more goods to distribute to the wider market while consumers demand more of the low-cost imports. Also, international trade can increase the supply and demand of a country’s export goods. According to Hartmann et al. (2020), through international trade, a country can gain knowledge, expertise, and efficiency from other countries, enabling it to enhance the quality of its export products. The improved quality makes the product more competitive in the domestic and international markets, ultimately driving its demand since consumers want products that are of quality. To meet the rising demand, suppliers have to increase the supply of the export product.
The competitiveness of goods in the international market is influenced by international trade. According to Rusu and Roman (2018), in international trade, the competitiveness of a good’s market is determined by its ability to be produced and sold in the market, despite competition from goods from other countries. If the export good is identical to those produced by other countries in the international trade, the supply of the export good from one particular country will be low since the country only accounts for a small portion of the market. Consumers' demand for the export product will be met by other many countries. If the export good is highly differentiated, the supply and demand of the export good will be high because the good will be highly competitive in the market. Similarly, if the imported good is highly differentiated, its competitiveness in the international market will be high because only a few countries will be producing the particular good for import.
As international trade influences the com...