Why does it make sense to trade with other nations?
A) After producing all the product and service its people want and need, a nation can sell the excess products to the world.
B) Some nations have lots of natural resources and technological know-how. They have an ethical obligation to offer the rest to other nations.
C) Other nations need foreign currency.
D) A nation will produce what it can produce most efficiently and effectively and buy from other nations what they can produce most efficiently and effectively.

Question

Quizplus · Accepted Answer

There are several reasons why countries trade with other countries. First, no nation, not even the most technologically advanced one, can produce all of the products that its people want and need. Second, other nations would seek to trade with that country in order to meet the needs of their own people. Third, some nations have an abundance of natural resources but limited technological know-how, while other countries have sophisticated technology but few natural resources. Global trade enables a nation to produce what it is most capable of producing and to buy what it needs from others in a mutually beneficial exchange relationship.

Why Does It Make Sense to Trade with Other Nations