Effects of International Trade on Qatar’s Economy


The international trade is a form of trade that comprises a number of countries, which import or export their products. The trade usually involves sell or purchase of finished products or raw materials and employs the use of foreign currencies among the involved countries. Initially, the trade was not very common as the world was not connected and accessibility was limited. However, with the advent of airplanes, water vessels, and other forms of communication initiated by technological advancements, the world has become a global village where countries buy or sell products of their choice easily and conveniently.

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The convenience instigated by technological advancements has increased the frequency of the trade as well as its gains. Therefore, the present world has witnessed a tremendous increase in the trade and its effects on the various aspects of several countries such as the economy. It is within this context that the essay examines the effects of the international trade on Qatar’s economy using three features, which are employment, foreign exchange, and infrastructural developments.



The trade opens up a country and makes it access various forms of economic growth and revenues. By engaging in the trade, a country increases the amount of revenues that it earns and expands the amount of products that it purchases within and outside its borders. Since the trade cuts across the borders of different countries, the prices of products tend to increase as it employs the use of foreign currencies. It is fundamental to outline that some of the foreign currencies used are high in value, and thus, improve the economy of some developing countries. According to Bożyk (2006), the trade is one of the drivers that help a country increase its rate of employment and minimize instances of unemployment. Some of the common forms of employment that are present in several countries, which engage in the trade, include self, direct, and indirect employment.

In Qatar, several individuals in the country enjoy the gains of the trade directly, indirectly, or as entrepreneurs. While some of the individuals in the country work for various industries that export products to other countries, others work in sectors that supply raw materials used by the exporting industries. For instance, Qatar exports oil to various countries in the world. As such, several individuals in the country work in plants that manufacture and export oil.

Essentially, the trade directly employs those individuals, who work in oil related plants, whereas those, who work for companies and sectors that help the oil related industries manufacture and supply oil enjoy indirect employment. Cate (2009) states that oil sector in Qatar comprise the leading employers in the country and employ a high percentage of the country’s population. Besides those working directly and indirectly, a substantial number of people living in the country have businesses that help them meet their daily requirements. Businesspeople, who sell food, beverages, and other products purchased by those directly and indirectly employed by the trade form the section of individuals, who are self-employed.

Foreign exchange

Principally, the trade is a form of trade that involves several countries adjacent or far from each other. As a result, the countries have to use currencies that are different in the process of importing or exporting their products. For instance, when Qatar supplies its products to countries such as the United States, it earns foreign currencies in the form of dollars. Imperatively, when countries import products from a respective country, it uses its currencies to purchase them and in turn, the exporting country gets foreign currencies, which it can use to import products from other countries. Foreign exchange is one of the major benefits associated with the trade (Bożyk, 2006).

Moreover, the country increases its bargaining power amongst other countries in the international market since the high amount of foreign currencies boosts its purchasing power. The significance of foreign exchange in a country is a factor that scholars and leaders of contemporary nations cannot downplay in their quest to improve their economies.

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In Qatar, the amount of foreign currencies generated by the trade is tremendous and is one of the factors attributed to the country’s economic growth. The benefits of foreign currencies in the country are evident from the numerous imports that the country has undertaken on various products. With the foreign currencies, the country can effectively purchase raw materials and finished products that are useful in developing and boosting the standards of its infrastructure.

Cate (2009) explains that foreign exchange facilitates various products that Qatar purchases in order to advance the standards of its infrastructure. As such, the role played by foreign exchange in Qatar is paramount and its importance is a factor that facilitates the country’s economic growth. It is vital to understand that without the trade, several benefits orchestrated by foreign currencies could otherwise be absent, and hence, the numerous resources developed in the country cannot materialize.

Infrastructural development

The trade opens up a country to an external market characterized by the use of foreign currencies and international prices that are usually higher as opposed to domestic prices. The higher prices and foreign currencies are among the factors that boost the country’s economy and improve the livelihoods of its citizens. Through the increased revenues accruing from higher prices, which occasion from the trade and foreign currencies, the country can effectively purchase raw materials and products, which are instrumental in advancing the quality of its infrastructure.

According to McMasters, Pitts, Prien, and Kamery (2003), the trade is one of the drivers that facilitate introduction and development of infrastructure in several countries. Transport industry, buildings, and social amenities are some of the infrastructure that several developed and developing countries initiate or develop using revenues earned from the trade.

Remarkably, Qatar has earned pronounced levels of revenues practical in promoting the various types of infrastructure in the country. Roads, railways, and other components of the transport sector are among the major infrastructure that have benefited from the revenues accruing from the trade (Bożyk, 2006). Besides the transport sector, the country has effectively developed its buildings and social amenities in the quest to ensure that the infrastructure meet the required international standards. It is notable to assert that these developments are results of revenues earned from the trade that the country undertakes with other countries of the world.


The trade is very important in promoting the country’s economy. The trade has various benefits that range from employment, foreign exchange, and infrastructural development. Due to the high amount of revenues that the trade brings into a respective country, it facilitates successful development and growth of the country’s economy. Qatar is one the countries that has benefited from the trade. Notably, because of the trade and associated revenues, the country has engaged in various developments and has earned high levels of foreign exchange. The high levels of foreign exchange and increased revenues have minimized unemployment rates in the country.


Bożyk, P. (2006). Globalization and the Transformation of Foreign Economic Policy. Aldershot: Ashgate Pub. Web.

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Cate, R. (2009). The Impact of International Trade on Less Developed Countries. Business Intelligence Journal, 2 (1), 113-137. Web.

McMasters, M., Pitts, S., Prien, K., &Kamery, R. (2003). Positive and Negative Aspects of International Trade on the U.S. Economy and Labor. Proceedings of the Academy for Studies in International Business, 3 (2), 39-44. Web.

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