An essay regarding the benefits and costs of global engagement from the perspective of developing countries

The Benefits and Costs of Global Engagement Student Name Institutional Affiliation Date The Benefits and Costs of Global Engagement Benefits Engaging in international trade allows developing countries to access larger markets. Developing nations have a higher measure of openness, making them more reliant on international trade. Most of the businesses in developing countries cannot reach optimum without exporting their products because of the smaller economic size of their countries. Accessing a larger market due to international trade is critical for firms in developing nations since it allows them to increase production. The increase in production creates job opportunities and leads to economic growth for developing countries. Secondly, developing countries benefit from international trade since they can specialize in exporting products in which they have a comparative advantage. Producing goods with the lowest opportunity cost can increase overall production for firms in developing nations, enhancing competitiveness in the global arena. Further, through international trade, developing nations acquire a different of goods. Because of resource constraints, developing countries are unable to produce a variety of goods and services. Developing countries lack the capital resources needed to manufacture products that require extensive capital. Without international trade, these countries would be una...