Trade, whether related to financial or commercial markets (importing and exporting goods and services), has a profound and comprehensive impact on the world, and its effects can be summarized in the following points:
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1. Stimulating global economic growth
Trade allows countries to exchange goods and services that they need and cannot produce efficiently.
It contributes to enhancing the Gross Domestic Product (GDP) of countries.
Example: China exports electronic products to Europe, generating huge revenues and boosting its economy.
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2. Creating job opportunities
Companies that rely on exporting or importing need labor in areas such as production, transportation, marketing, and logistics.
Also, financial markets open new job fields in areas such as market analysis, brokerage, and investment.
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3. Impact on financial stability
Financial trading can lead to severe economic fluctuations (such as financial crises), especially if uncontrolled speculation or crises of confidence occur.
Example: The 2008 financial crisis began with complex real estate trades in America and spread to the entire world.
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4. Enhancing technological advancement
Companies compete to offer the best, which accelerates innovation and improves products.
Financial technology (Fintech) has developed significantly as a result of electronic trading and digital markets.