Why do countries trade goods and services?
(1 point)
Responses
because they want to reduce interdepende
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 increase their own economic prosperity and growth by accessing new markets and consumers.
Countries trade goods and services for several reasons:
1. They want to reduce interdependence: By engaging in trade, countries can minimize their reliance on a single source or supplier for goods and services. This helps to reduce the risk of disruptions in supply chains and ensure a steady flow of resources.
2. They do not have all the goods and resources they need: Countries have different types of natural resources, expertise, and technologies. By trading, they can obtain goods and resources that they lack or are not available domestically, such as specific raw materials or advanced technology.
3. They want to help other countries grow: Trading with other nations can contribute to their economic growth and development. This can be beneficial in terms of poverty reduction, fostering stability, and promoting peace between nations.
4. They want to protect domestic industries from competition: While this is not the main reason for trade, some countries may engage in trade to protect their domestic industries. By limiting imports through tariffs or quotas, they aim to shield their producers from foreign competition and maintain a competitive advantage.