Final answer:
To benefit from international trade, nations need to have competitive markets. This enables low-income countries to exploit comparative advantage and achieve economies of scale, while consumers enjoy a wider variety of goods at competitive prices. It's important for public policy to help those negatively affected by trade disruptions.
Step-by-step explanation:
The economic process that needs to accompany international trade for nations to benefit from such trade is competitive markets. For low-income countries, international trade offers significant advantages over high-income countries as it allows them to take advantage of comparative advantage, achieve economies of scale, and partake in global value chains. Small economies, when engaging in international trade, can overcome limited domestic trade capabilities and can benefit from a greater variety of goods, potentially more competitive prices, and pressures that make local firms more efficient and responsive to consumer needs.
International trade also supports small economies by facilitating economies of scale, which can be hard to achieve in a limited domestic market. Greater competition and a wider market can lead to companies specializing in particular aspects of production where they hold an advantage, allowing for lower costs and greater efficiency. Additionally, consumers benefit from a wider variety of goods, and workers can gain from specialized and potentially higher-paying jobs.
It is important to note, however, that while the average person benefits from international trade through access to varied products and better prices, there are also those who may suffer from the adjustments it requires. Displaced workers and the need for new skills can be challenging, which is why economists see room for public policy to attenuate these negative effects while leveraging the positive aspects of global trade.