International trade and investment play a huge role in helping economies grow. They make businesses better and encourage friendly competition. Here are some important ways they do this:
Market Expansion: Trade helps countries reach bigger markets. For example, in 2020, people around the world traded goods worth about $19 trillion!
Investment Flow: When companies from one country invest in another, it's called foreign direct investment (FDI). This brings money, new technology, and helpful skills. In 2019, global FDI was around $1.54 trillion, which really helped local businesses.
Job Creation: More trade can mean more jobs. In countries that are part of the OECD, businesses that export goods hire about 16% more workers than those that don’t export.
GDP Boost: When countries trade, their economies often grow faster. Just a 1% increase in trade can raise the GDP by 0.5% to 1%.
In short, international trade and investment help make economies more efficient, encourage new ideas, and spark growth in these ways.
International trade and investment play a huge role in helping economies grow. They make businesses better and encourage friendly competition. Here are some important ways they do this:
Market Expansion: Trade helps countries reach bigger markets. For example, in 2020, people around the world traded goods worth about $19 trillion!
Investment Flow: When companies from one country invest in another, it's called foreign direct investment (FDI). This brings money, new technology, and helpful skills. In 2019, global FDI was around $1.54 trillion, which really helped local businesses.
Job Creation: More trade can mean more jobs. In countries that are part of the OECD, businesses that export goods hire about 16% more workers than those that don’t export.
GDP Boost: When countries trade, their economies often grow faster. Just a 1% increase in trade can raise the GDP by 0.5% to 1%.
In short, international trade and investment help make economies more efficient, encourage new ideas, and spark growth in these ways.