On this page, we will discuss how South Africa benefits from international trade. The content on this page is relevant for Business Studies Grade 9 and Economic and Management Sciences Grade 9 Subjects.
In terms of international trade, South Africa is a Member of the BRICS, the group of emerging world economies including China, Brazil, Russia and India. The country has a well-advanced financial, legal, communications, energy and transport sectors. Its main export commodities are gold, diamonds, platinum, other metals and minerals, machinery and equipment. According to International Trade Centre, South Africa’s main trade partners are the European Union, China, US, Japan and India. Future development challenges remain inequality and high unemployment rate, which was worsened by the post-2008 economic slowdown.
How does South Africa benefit from international trade?
South Africa benefits from international trade as follows:
- The economy benefits as investment by foreign businesses helps to create jobs, and stimulates economic growth.
- South Africa lacks certain business and technology skills; with international trade there is an exchange of expertise and commodities.
- It affords South Africa access to many markets, for export of our goods and imports of products we don’t have.
- International trade is very competitive: for South Africa to participate, we need to meet international standards just as we would also not accept inferior products.
- International trade also promotes good relations between countries. South Africa has forged beneficial links with many countries.
Sources
https://www.intracen.org/country/south-africa/
