Why Countries Trade Flashcards
Gets rid of excess supply and production:
By outsourcing extra materials and making a profit, a country is saved from possibly wasting materials and money.
To gain higher quality products:
By creating a competitive market internationally through trade, consumers demand higher quality goods from other countries.
To share new ideas and technological advancements:
This allows countries to develop quicker overall and use technology to advantage humans in many ways.
To increase multiculturalism.
By trading countries introduce new diverse goods and services from other cultures to an otherwise one dimensional nation.
To access new products:
By trading countries allow citizens to access different products and use a unique variety of products, which keeps life interesting in general.
To gain access to new markets:
Countries will often trade with another country to gain access to potential customers in another part of the world.
To gain access to raw materials.
If a country needs raw materials they may trade in order to access them for production purposes. Canada and South Africa are known for an abundance of raw materials.
To benefit from the strengths of another country’s industry.
Some countries are known for their strength in a certain industry, for example Japan is known for advanced technology in cars, so some countries may trade Japan for motor vehicles because of Japan’s reputation.
To create variety.
Life can be very dull when everyone has the same clothes, cars, shoes, food, etc. With trading countries and provide consumers with the luxury of choice.
