ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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“Have you ever swapped sandwiches with a friend at lunchtime?”
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“Trade allows people to sell, buy, or exchange goods and services to get what they need.”
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“For example, in some countries, people grow a lot of rice.”
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None of the above
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Detailed explanation-1: -Trade is the exchange of goods and services between parties for mutually beneficial purposes. People and countries trade to improve their circumstances and quality of life. It also develops relationships between governments and fosters friendship and trust.
Detailed explanation-2: -Trade is the activity of buying, selling, or exchanging goods or services between people, firms, or countries.
Detailed explanation-3: -Support your answer with evidence from the article. Students should recognize that goods are physical items while services are actions people do. That is why exchanging a scooter for a video game is an example of trading goods while getting paid to mow a neighbor’s lawn is an example of trading a service for money.
Detailed explanation-4: -Trade is an act or process of buying, selling or exchanging goods and services. Trade, in general, is of two types. They are Internal trade and International trade.