ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need
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Countries can take advantage of each other making the international market more secure
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Countries are able to learn the weaknesses of other countries and exploit those for natural resources
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Countries are able to enter other countries with spies and foreign agents to undermine governments.
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Detailed explanation-1: -When people trade, both sides benefit from the transaction. Sellers of course gain monetary satisfaction and buyers gain satisfaction since they are able to buy goods that cost less as compared to what they have in their local market.
Detailed explanation-2: -Trade between two agents or countries allows the countries to enjoy a higher total output and level of consumption than what would have been possible domestically. Canada and Mexico can each specialize in the good they have a comparative advantage in and exchange with one another.
Detailed explanation-3: -Because countries are endowed with different assets and natural resources, some may produce the same good more efficiently and sell it more cheaply than others. Countries that trade can take advantage of the lower prices available in other countries.
Detailed explanation-4: -More Job Opportunities. Expanding Target Markets & Increasing Revenues. Improved Risk Management. Greater Variety of Goods Available. Better Relations Between Countries. Enhanced Company Reputation. Opportunities to Specialize. 31-Aug-2022