International Trade Homework Help

What is International Trade?

International trade is the exchange of goods and services between countries.

Basis of International Trade

International trade arises because: -

a) Economic resources are not evenly distributed in all the countries.

b) Climatic conditions are different, favouring the cultivation of different crops.

c) The different goods produced require different methods and resources used in different proportions.

d) Mobility of factors is limited. 

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