Why is trade necessary?
A.
Producers create too much demand for goods.
B.
Resources are not distributed evenly.
C.
Consumers do not supply enough goods.
D.
Resources are abundant everywhere.
I agree with B.
Like here we have fish, but not wheat.
I didn't read carefully. I also agree with B.
Take a stab at it. What do you think?
I think C is the answer
i meant B
Thank you both!
ty
The correct answer is B. Resources are not distributed evenly.
Trade is necessary because resources are not evenly distributed across the world. Every country or region has its own set of resources, such as natural resources, labor, technology, and capital. Trade allows countries to utilize their comparative advantages and specialize in producing goods or services that they can produce most efficiently.
For example, some countries have abundant natural resources like oil, while others may have fertile land for agriculture or skilled labor for manufacturing. By engaging in trade, countries can exchange their surplus resources for the resources they lack, leading to efficiency and better allocation of resources.
Trade also promotes economic growth by increasing market size, encouraging innovation, and providing access to a wider range of goods and services. It allows consumers to have access to a variety of products that may not be available in their own country, and it creates competition, which can lead to lower prices and better quality goods.
Overall, trade is crucial for ensuring that resources are effectively utilized across the world and that consumers have access to a diverse range of goods and services.