Buy custom Why do countries trade?(simple English)
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1056 |
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What it means is that a country shall produce and export a certain good or service by not comparing or looking at any better opportunities and trade options. Certainly, there are reasons we trade and it is obvious from above that we trade because we can all benefit in ways we use the law of comparative advantage...
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Due to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production...
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