Global trade plays a vital role in economic development by enabling countries to exchange goods, services, and resources, which boosts productivity and growth. Through trade, nations can **specialize** in producing goods where they have a comparative advantage, leading to more efficient use of resources. **Access to international markets** fosters innovation, improves technology, and encourages investment in infrastructure. For developing countries, global trade provides opportunities to diversify economies, reduce poverty, and raise living standards. However, trade can also lead to challenges, such as economic dependence and inequality, requiring balanced policies to ensure sustainable and inclusive economic development.
Global trade and economic development
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