Advantages and disadvantages of foreign trade. - SS1 Commerce Past Questions and Answers - page 1

Increased market opportunities

Employment opportunities and revenue generation

Vulnerability to external factors

By facilitating the exchange of knowledge and technology

Challenges in maintaining a stable economy

Foreign trade provides increased market opportunities for businesses, allowing them to access larger customer bases beyond their domestic boundaries and potentially leading to increased sales and profits.

One potential disadvantage of foreign trade is the vulnerability to external factors such as global economic fluctuations, geopolitical tensions, or changes in international trade policies, which can disrupt trade flows and negatively impact businesses and economies.