International trade plays an important role in a country’s national economy. The positive and negative impacts of this trade have far-reaching implications for economic growth, job creation, and the availability of goods and services. One of the main positive impacts of international trade is increased access to goods and services. By opening markets to foreign products, countries can enjoy a variety of commodities that may not be produced locally. For example, tropical countries can import agricultural technology from countries with temperate climates that have innovations in agriculture. This helps improve domestic production efficiency. Apart from that, international trade also increases competition in the domestic market. When foreign companies enter the market, local companies are required to improve the quality of their products and services. In this way, consumers get benefits in the form of more choices and more competitive prices. Increasing exports is also one of the significant benefits of international trade. Countries that are able to export their superior products can increase national income and foreign exchange reserves. Income from these exports is used for investment in other sectors, such as education and health, which in turn will support long-term economic growth. However, international trade also has negative impacts that need to be considered. One of them is the potential closure of local industries due to intense competition from imported products. Industries that are unable to compete may be forced to close, thereby increasing unemployment rates. This can lead to social and economic instability in areas that depend on certain industries. Inflation is also an impact that cannot be ignored. When a country’s currency exchange rate decreases, the cost of importing goods will increase. This can push the prices of domestic goods and services to rise, thereby potentially reducing consumer purchasing power. Additionally, international trade can lead to economic dependency. Countries that are too dependent on imports of certain goods are vulnerable to fluctuations in prices and trade policies of sending countries. This instability can affect the national economy as a whole. Environmental influences cannot be ruled out either. Industrial growth driven by international trade can lead to exploitation of natural resources, which leads to environmental damage. Therefore, it is important to adopt sustainable policies in international trade. Lastly, international trade regulations and diplomatic relations greatly influence the national economy. Negotiations regarding tariffs and quotas have a direct impact on trade flows. Positive relationships with other countries can open up new trade opportunities, while political tensions can result in detrimental sanctions. These impacts show that international trade is a complex aspect of the economy that requires a strategic approach to maximize benefits while minimizing risks. The national economy needs to be adaptive and innovative in responding to changes that occur due to the dynamics of global trade.