Review and reflect on the major topics in this course that address the various aspects of International Trade and Business: 1) Impact of globalization. 2) Relevance of Trade theories in the current...

INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
Table of Contents
Introduction    3
Research Problem    3
Research Objectives    4
Research Questions    4
Purpose of the Study    4
Literature Review    5
Research Gap    8
Data & Methodology    8
Discussion    10
Conclusion    11
References    13
Introduction
International trade and economic development are interconnected concepts that play a crucial role in the growth and prosperity of the countries.  International trade refers to the exchange of goods and services across the international models while economic development refers to the aspects by which the economy of a country grows and has an improvement on the standard of living. The relationship between international trade and economic development is complex and dynamic.
India, a country which has been a meagre nation surviving and striving to meet the basic needs some years back, is presently the 5th largest economy in the world. Global institutions have proclaimed India as the “Bright Spot” of the 21st century. This dynamic transition has a significant impact of the economic reforms that the country had undertaken just 2 decades back. Therefore, understanding the relationship between international trade and economic development is of great importance for policy makers, economists, and business leaders which can be well illustrated by the context of economic development in a developing nation of India. This particular research paper aims to explore the relationship and analyse the impact of international trade and business on the economic development the developing nation of India after the subsequent trade liberalization policies.
Research Problem
    The research problem of examining the relationship between international trade and economic development is of great significance due to the increasing aspects of globalization of the world economy. In recent years countries have become more interconnected through trade and investment and this has had a significant impact on economic development. However, the benefits of international trade are not evenly distributed across the countries and there are concerns about the impact of trade on income inequality and the environment. Therefore, this study aims to provide a comprehensive analysis of the relationship between international trade and economic development by considering perspectives and evaluating the evidence from the India owing to its present economic position in the global economy.
Research Objectives
The main objective of the study is to examine the relationship between international trade and economic development and to identify the specific conditions under which trade can contribute to economic growth and poverty reduction. Specifically, they study focuses on the aspects to:
· Identify the mechanism through which trade contribute to economic development of India.
· Assess the impact of trade liberalization and integration on the economic growth and poverty reduction in India.
· Analysing the impacts of distribution of trade on different social groups and regions and identifying strategies to mitigate the negative effects.
Research Questions
To achieve the above objectives this particular research will address the following research questions:
· What is the empirical relationship between the economic growth and international trade in India?
· What is the impact of the growth of international trade on the poverty reduction in a India?
· What is the relationship between the trade liberalization and economic growth and poverty reduction in India?
Purpose of the Study
The purpose of the study is to define and identify the factors that determine the impact of International Trade on the economic development of India in terms of factors such as trade policies, institutional quality and technological innovation. By doing so this particular study aims to provide policy makers with a better understanding of the conditions under which international trade can be beneficial for economic development. Moreover, the study will evaluate the cost and the risks of international trade for the economic development such as the risk of dependents on the foreign markets or the potential for negative environmental externalities.  Finally, this study will contribute to the existing literature on international trade and economic development by providing new empirical evidence and identifying the areas for further research.
Literature Review
International trade and economic development have been studied extensively in the field of Economics that have gained importance in the terms of globalization and international business (Xu et al., 2020).  Classical economics such as Adam Smith and David Ricardo argued that international trade can increase the economic growth and specialization leading to the games from trade for all the countries involved in the trade. Both Adam Smith and David Ricardo conceptualized the theory of absolute advantage from trade and comparative advantage of trade respectively which has significantly evolved over time and give a theoretical importance of international trade in the economic development (Tang et al., 2021).
According to classical theory it was propounded that trade can make everyone better off and international trade can give a wider variety of markets which can extensively enhance the effectiveness of economic development in a particular nation. The neo classical theory of trade emphasizes the importance of comparative advantage and it has been propounded that the countries specializing in producing goods and services are relatively more efficient in producing (Rahman et al., 2020). This leads to the more efficient allocation of resources and increased economic welfare of the people. This particular theory argues that economic resources are not evenly distributed across the world. This makes the production of certain goods more efficient in one part of the globe than the other. This particular aspect of factor abundance theory had triggered the effectiveness of International Trade leading to the growth of overall economic development of not a single nation but all the nations participating in the international trade (Okenna et al., 2020). The new trade theory has significantly emphasized on the role of economies of scale and product differentiation in shipping the international trade patterns and determining the impact of trade on the economic development. The institutional theory of trade emphasizes the role of Institutions and governance in shipping the impact of International Trade on the economic development (Khan, 2019). Institutions of property rights, rule of law and other regulatory frameworks can affect the ability of the country to participate in the global markets and benefit from international trade. 
Empirical studies have shown that international trade can increase economic growth and reduce poverty in developing countries. For example, the world has found that one percentage point increase in a country's trade to...