What are the effects of international trade on local economies? 🔊
International trade can have mixed effects on local economies. While it can boost economic growth by expanding markets and increasing access to goods, it may also lead to job displacement in certain industries. Globalization often shifts production to countries with lower labor costs, which might undermine local businesses. Additionally, trade can create opportunities for innovation and efficiency, benefiting consumers with lower prices. Policymakers must navigate these complexities to harness the benefits of trade while protecting vulnerable sectors within their economies.


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