The contribution of foreign trade as an important factor of globalization is extremely important, as it enhances economic, cultural and political relations between different countries. Foreign trade contributes to the acceleration of globalization in the following ways:
- Expansion of commercial relations: Foreign trade gives countries the opportunity to exchange each other's products and services. This strengthens commercial relations between different countries and reduces barriers between markets.
- Economic Growth: When a country exports its products and services abroad, it receives foreign currency, which increases the strength of the country's currency and helps in economic growth. Also, it generates employment opportunities.
- Exchange of new technologies: New technology, ideas and innovations are exchanged between countries through foreign trade. This improves the quality of production and increases the competitiveness of the country.
- Maximum use of resources: Different countries have different types of natural resources available. Foreign trade gives countries an opportunity to make maximum use of their resources, for example, a country which has large cultivable land exports agricultural products, while another country which is capable of industrialization exports technological products.
- Exchange of culture and ideas: When a country trades with another country, not only economic relations increase but cultural and ideas are also exchanged. This increases unity and understanding between different countries.
- Creation of global supply chains: Supply chains are created across different countries through foreign trade. Companies manufacture different parts of the same product in different countries, reducing global production costs and improving product availability.
- Extending the value chain: Foreign trade gives countries access to international markets for their products and services. It gives countries the opportunity to connect with a wide consumer base, thereby increasing their production capacity and production value.
