Why do countries trade, Business Economics

Why do countries trade?

International trade is the swap of goods and services among countries. Trade enhances consumer choice and complete welfare.

Various countries have various types of factor endowments as like climate, skilled labour force and also natural resources vary among nations. Therefore several countries are better placed in the production of specific goods than all others.

Economic theory predicts all countries achieve when they specialise and trade the goods wherein they have a comparative benefit. It is true even if one nation has an absolute benefit over the other country.

Posted Date: 8/27/2013 7:22:11 AM | Location : United States







Related Discussions:- Why do countries trade, Assignment Help, Ask Question on Why do countries trade, Get Answer, Expert's Help, Why do countries trade Discussions

Write discussion on Why do countries trade
Your posts are moderated
Related Questions
Explain foreign direct investment: 1.  Identify and briefly explain three costs of foreign direct investment (FDI) for a country such as China (the home country) and two benef

How can the size of shadow economy estimated? The size of the shadow economy is estimated when activity is undeclared as the amount of informal activity can be calculated: a

Question 1: a. Describe the role of trade union in the wage bargaining process. b. Formulate a model that tests for the wage gap between union and nonunion earnings in a

If nominal GNP enhances at a rate of 10 per cent per year whereas the GNP deflator enhances at 8 per cent per year then show how much real GNP rises. Explain?

QUESTION (a) What are the causes of inflation in an economy? (b) Discuss the policy implications that the central bank will implement if there is excess liquidity in the mar

A. CALCUATE THE OPTIOMAL MONEY GROWTH RATE NEEDED FOR THE FED TO HIT ITS INFLATION TARGET RUN

Can economies grow of less developed countries by developing its secondary sector? Economies grow of less developed countries by developing its secondary sector because manufac

Assess the impact of fiscal and monetory policy on business organisations and their activities

WHAT are relationship between them showthese relitionship with the help of digram also state relitionship between AR MR & TR.

International oil has been described as the lifeblood of industrial society. A National Security Council paper in 1953 noted that American Based multinational oil companies were in