Why Do Nations Trade?
5.1 Explain why nations trade.
Why do nations trade with one another? The short answer is that trade enables countries to use their national resources more efficiently through specialization and thus enables industries and workers to be more productive. These outcomes help keep the cost of many everyday products low, which translates into higher living standards. Without international trade, most nations would be unable to feed, clothe, and house their citizens at current levels. Even resource-rich countries such as the United States would suffer greatly without trade. Some types of food would become unavailable or very expensive. Coffee and sugar would be luxury items. Petroleum-based energy sources would dwindle. ...
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