microeconomics - trade

posted by .

What is the significance of trade? Why oh why does it occur? (What i know is that 2 parties gain more if they trade but is there anything else? i feel i missed something...)



Fundamentally, that's it. With trade, both parties are better off.

Now then, the existance of trade leads to specialization. This improves overall productivity.

The existance of trade also leads to markets. With markets, economists can measure the relative value of goods and services.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Microeconomics

    Each year, the United States considers renewal of Most Favored nation (MFN) trading status with China. Historically, legislators have made threats of not renewing MFN status because of human rights abuses in China. The game below reflects …
  2. Socials

    Outline the results of fur trade from the points of view of both the French traders and the Native peoples whom they encountered. -more demand for types of fur = more wealth to gain -Trading posts were built -War begins = French vs …
  3. business

    Write a 200- to 300-word essay arguing for or against unrestricted international trade. Some possible platforms on which to write are comparative advantage, gains from trade, World Trade Organization, and trade restrictions. Support …
  4. Microeconomics

    Which statement is FALSE? A. If the U.S. can produce rice more efficiently than Japan can, the U.S. enjoys an absolute advantage. B. Economists dislike both tariffs and import quotas. C. Under the law of comparative advantage, total
  5. economics

    1) Recent trends toward trade restrictions have been to a) lower only those trade barriers related to technology. b)shield a country's automobile industries. c)increase trade barriers. d) decrease trade barriers
  6. please check(Social studies)

    4.C 5.B 4.why is ectourism better for the environment than traditional tourism?
  7. social studies(updated answers)

    4.B 5.A 4.why is ectourism better for the environment than traditional tourism?
  8. social studies(updated answers)

    4.why is ectourism better for the environment than traditional tourism?
  9. History

    Which accurately describes aspects of the trans-Saharan trade between Europe and Africa?
  10. History

    Which accurately describes aspects of the trans-Saharan trade between Europe and Africa?

More Similar Questions