International Trade

Question 1

Define international trade

Answer 1

Refers to selling across borders eg.exchange of goods and services between countries

Question 2

Why do countries trade internationally?

Answer 2

Variety-variety of products they cant make themselves/mass produce
Specialise-country specialises in what it does best then sells them
Grow-access to new customers, grows economy
Reduce costs-export markets=economies of scale-efficient
Avoid conflict-nations become dependent on each other-war less likely as economies so linked