Final answer:
International trade is the exchange of goods and services across national borders, and its importance has increased due to factors like industrialization and globalization. It plays a significant role in a country's GDP and offers economic gains worth trillions of dollars. Smaller and lower-income countries have the potential to benefit greatly from international trade.
Step-by-step explanation:
International trade is the exchange of goods and services across national borders. It plays a significant role in a country's Gross Domestic Product (GDP) and has become increasingly important due to factors like industrialization, globalization, and the growth of multinational corporations. For example, a country like China exports a significant amount of consumer goods to other countries, while importing machinery and technology to support its manufacturing industries.
The economic gains from expanding international trade are immense, with measured gains in hundreds of billions of dollars and possibly reaching trillions of dollars as a whole. Smaller and lower-income countries, in particular, have the potential to benefit greatly from trade by accessing new markets and opportunities for growth.
Overall, international trade promotes economic development, fosters cooperation between nations, and allows countries to specialize in producing goods and services where they have a comparative advantage.