If two nations are involved in trade to maximise their productivity, specialisation and economic growth. Besides this, elaborate certain other benefits that these nations can acrue through trade.
(i) Higher Standard of Living A country rarely has the capacity to produce everything required hy its citizens. Through international trade one can procure the product which it cannot manufacture and meet the shortage of essential commodities for domestic consumption and raise the standards of living.
(ii) Employment It generates employment both directly and indirectly.
(iii) Higher Earnings Business houses in international market can get higher profit by the way of international trade.