Ielts Academic Writing Task 2 Sample 160

The expansion of global trade has led to economic growth but has also exacerbated income inequality. Explore the advantages and disadvantages of international trade.

The expansion of global trade has indeed brought about economic growth and development by facilitating the exchange of goods, services, and capital across borders. However, it has also exacerbated income inequality and raised concerns about its social and environmental impacts.

One of the primary advantages of international trade is its potential to drive economic growth and prosperity by promoting specialization, efficiency, and productivity gains. Through comparative advantage, countries can specialize in producing goods and services in which they have a relative efficiency or cost advantage, leading to increased output, innovation, and competitiveness. Trade enables countries to access a wider range of products at lower prices, improving consumer welfare and living standards.

Moreover, international trade fosters economic integration and interdependence among countries, creating opportunities for cooperation, investment, and technological transfer. Foreign direct investment (FDI) and multinational corporations (MNCs) play a crucial role in global trade by establishing supply chains, creating jobs, and spurring industrial development in host countries. Trade agreements and international organizations such as the World Trade Organization (WTO) promote rules-based trade, reduce trade barriers, and facilitate trade negotiations, enhancing stability and predictability in the global trading system.

However, international trade also presents disadvantages and challenges, particularly concerning income inequality, job displacement, and environmental degradation. Globalization and trade liberalization have contributed to wage stagnation and job losses in certain industries, leading to economic insecurity and social tensions, particularly among low-skilled workers and marginalized communities. 

In conclusion, while international trade offers advantages such as economic growth, efficiency, and consumer welfare, it also raises concerns about income inequality, job displacement, and environmental degradation. Addressing these challenges requires comprehensive policies that promote inclusive growth, social protection, and environmental sustainability while maximizing the benefits of international trade for all stakeholders.