Why do countries trade goods and services?
A. Because they want to reduce interdependence
B. Because they do not have all the goods and resources they need
C. Because they want to help other countries grow
D. Because they want to protect domestic industries from competition
B. Because they do not have all the goods and resources they need
The correct answer is B. Because they do not have all the goods and resources they need.
Countries engage in international trade because they do not have all the goods and resources necessary to satisfy the needs and wants of their population. By trading with other countries, they can obtain goods and resources that are either unavailable or in limited supply domestically. This allows them to access a wider variety of goods and services, promote efficiency, and enhance economic growth.