Why do countries trade goods and services?
(1 point)
Responses
because they want to reduce interdependence
because they want to reduce interdependence
because they do not have all the goods and resources they need
because they do not have all the goods and resources they need
because they want to help other countries grow
because they want to help other countries grow
because they want to protect domestic industries from competition
because they want to protect domestic industries from competition
All of the above responses are correct reasons for why countries trade goods and services. Countries trade because they want to reduce interdependence, meaning they want to rely less on other countries for the goods and resources they need. They also trade because they do not have all the goods and resources they need domestically, so they rely on other countries to provide those goods and resources. Additionally, countries trade to help other countries grow by providing them with access to their markets and resources. Lastly, countries may also engage in trade to protect their domestic industries from competition by imposing trade barriers or tariffs.
Countries trade goods and services for several reasons:
1. Countries do not have all the goods and resources they need: One of the main reasons for international trade is that countries may not have all the necessary resources, technology, or expertise to produce certain goods or services themselves. By trading, countries can access a wider variety of goods and resources that are not available domestically.
2. To reduce interdependence: Countries may engage in trade to reduce their dependence on a single source of goods or services. By diversifying their sources of imports, countries can minimize the risks associated with relying too heavily on a single country or supplier.
3. To help other countries grow: Trade can also be a way for countries to support and foster economic growth in other nations. By trading, countries can provide opportunities for other countries to sell their goods and services in the global market, which can contribute to their economic development.
4. To protect domestic industries from competition: Some countries engage in trade to protect their domestic industries from competition. Through trade barriers such as tariffs or quotas, countries can limit the access of foreign goods or services to their domestic market. This protectionist approach is often used to shield domestic industries and ensure their competitiveness.
It is important to note that the reasons for countries engaging in trade can vary depending on the specific circumstances and objectives of each country.