ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Trade contributes to global efficiency. When a country opens up to trade, capital and labor shift toward industries in which they are used more efficiently. Societies derive a higher level of economic welfare.
Detailed explanation-2: -So, in this blog, we’ll discuss the 3 different types of international trade – Export Trade, Import Trade and Entrepot Trade.
Detailed explanation-3: -Henry has food but needs wool whereas Liam has wool but needs food. So Liam and Henry will exchange food and wool with each other so that Liam gets food and Henry gets wool making both of them satisfied. This is a perfect example of trade.
Detailed explanation-4: -Generally, there are two types of trade-domestic and international. Domestic trades occur between parties in the same countries. International trade occurs between two or more countries. A country that places goods and services on the international market is exporting those goods and services.